Bear Flag in Tesla?Tesla has been climbing recently, but some traders may see a bigger downtrend.
The first pattern on today’s chart is the series of higher lows since August 5. The EV maker fell yesterday to close at its lowest level in over a week. That may be viewed as a breakdown from a bearish flag.
Second, Tuesday’s high occurred near a 50 percent retracement of the move between the peak of July and the trough of this month.
Third, July’s high occurred near the high from December. Could that be viewed as a double-top reversal pattern?
Stochastics are also dipping from an overbought condition.
Next, prices are struggling at the 50-day simple moving average. The 8-day exponential moving average (EMA) also failed to move above the 21-day EMA. Those signals may reflect bearishness over the intermediate and short terms.
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