Tesla Motors Inc. - (TSLA) - May 13, 2021

by SIACharts.com

Tesla Motors (TSLA) slide down the rankings in the SIA S&P 100 Index Report accelerated yesterday. A day after slipping into the Red Unfavored Zone, Tesla plunged 26 spots in one day to 79th place and is now down 72 spots in the last month.

Tesla Motors (TSLA) shares have turned decisively downward this week. Cracks in the previous uptrend first started to appear back in February then the shares broke below their 50-day moving average, then in an April bounce, they peaked at a lower high. This week, the shares have snapped an uptrend line and then confirmed the start of a new downtrend by falling below the $600 round number and taking out several winter weekly closes to complete a bearish Descending Triangle pattern.

Next potential downside support appears at previous intraweek lows near $560 then $540, followed by the $500 round number and $400 where a measured move and the bottom of an old trading range converge. Initial rebound resistance appears at the 50-day moving average near $680 then the $700 round number.

The technical picture for Tesla Motors (TSLA) continues to weaken. Back in the winter, the shares peaked short of $900 and staged an initial correction back toward $550. The shares staged an initial bounce back up toward $750 but faltered at a lower high. This week, the shares have dropped back under $600, and have completed a bearish Double Bottom pattern, calling off the recent bounce and suggesting that at best the shares have moved into a lower trading range between $550 and $750.

A breakdown below $550 support near the March low would complete a bearish spread double bottom pattern and confirm the start of a new downtrend. Should that occur, next potential support may appear near $530 based on a horizontal count, then $500 where a round number and a previous column high converge. Initial resistance on a rebound appears near $645 based on a 3-box reversal.

With its bearish SMAX score falling to a dismal 0, TSLA is exhibiting near-term weakness across the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Total
0
Shares
Previous Article

Good News for the Reeling Markets — Major Tax Hikes Look Increasingly Unlikely

Next Article

6 Lyn Alden's 2021 Mid-Year Macro Outlook

Related Posts
Subscribe to AdvisorAnalyst.com notifications
Watch. Listen. Read. Raise your average.