Tesla’s Rally … In Trouble

‘Bag Holders’

Remember, Musk, cashed-out, long ago.

What’s left are bag holders; that ‘bag’ may be about to head south, in a hurry.

The last update on Tesla, link here, had this to say about a potential rally:

“If bonds rally, the rest of the market may also rally; that could include our chief cook and bottle washer, Tesla.”

So far, the bond rally has not materialized; TSLA’s spring set-up (i.e., rally), looks like it’s failing.

We’ve already presented that TLSA’s in a distribution phase and has been for nearly a year, link here.

Tesla (TSLA), Daily

Price action’s in a trading channel Fibonacci 13-Days wide; from lowest (channel contact) print to highest print.

Note that Friday’s bar was wide, with increasing volume; 74.6%, higher, than the previous session.

Summary

As noted in the prior update, TSLA printed an outside-up, on the weekly two successive weeks.

“Price action bounced at support and penetrated it several times before printing outside-up on the weekly (twice).”

Such prints are also called ‘key reversals’. Each time, that reversal has been negated.

Price action itself, tells us the TLSA rally, is failing.

The ‘distribution’ may be complete, with a ‘mark-down’ phase about to start.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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