A bearish pennant?!?
Updated
Greetings All,
TSLA formed a bearish pennant on the daily, which means a breakout is imminent (typically to the downside). Volume is declining as expected in a pennant pattern. The 100 EMA coincides with the %50 retracement from ATH of $900, which is acting as support. If TSLA breaks to the downside, target the 50%, 61.8% and 78.6% retracements shown in the chart. Of course, I'm rooting for a breakout to the upside....but we have to respect the TA. Even if TSLA retraces to the 61.8%, the trend remains bullish. If we close below the 200EMA (78%), the outlook changes.
Happy Trading!
Disclaimer. My ideas are for informational purposes only. My ideas do not constitute solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments. You should not construe any such information or other comments as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Please exercise your own due diligence.
TSLA formed a bearish pennant on the daily, which means a breakout is imminent (typically to the downside). Volume is declining as expected in a pennant pattern. The 100 EMA coincides with the %50 retracement from ATH of $900, which is acting as support. If TSLA breaks to the downside, target the 50%, 61.8% and 78.6% retracements shown in the chart. Of course, I'm rooting for a breakout to the upside....but we have to respect the TA. Even if TSLA retraces to the 61.8%, the trend remains bullish. If we close below the 200EMA (78%), the outlook changes.
Happy Trading!
Disclaimer. My ideas are for informational purposes only. My ideas do not constitute solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments. You should not construe any such information or other comments as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Please exercise your own due diligence.
Note
TSLA headed to 78% retracement (200MA) Trade active
BTO 3/19 650C @2K - Day Trade OnlyTrade closed: stop reached
Disclaimer
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