Is Tesla Going into Reverse?
Tesla had a sharp rally in late March, but now there could be evidence of sellers taking the wheel.
The first major pattern on today’s chart is the trendline running along the peaks of November 4, January 4 and April 5. Each time prices have approached with a bang, only to reverse lower the next candle. The ovals highlight rejections near the highs, suggesting the line remains important resistance.
Second, MACD edged lower on Friday. Similar crosses marked downside turns at other times like mid-November and early January.
Third, TSLA made a higher high early last week. It then proceeded to close under the previous low. The result was a large bearish outside week -- another potential reversal pattern:
Finally, the March rally was partially fueled by news of its stock split and quarterly deliveries. Now that those events have passed, the broader weakness in high-multiple growth stocks could return to plague TSLA.
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The first major pattern on today’s chart is the trendline running along the peaks of November 4, January 4 and April 5. Each time prices have approached with a bang, only to reverse lower the next candle. The ovals highlight rejections near the highs, suggesting the line remains important resistance.
Second, MACD edged lower on Friday. Similar crosses marked downside turns at other times like mid-November and early January.
Third, TSLA made a higher high early last week. It then proceeded to close under the previous low. The result was a large bearish outside week -- another potential reversal pattern:
Finally, the March rally was partially fueled by news of its stock split and quarterly deliveries. Now that those events have passed, the broader weakness in high-multiple growth stocks could return to plague TSLA.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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