TSLA Reaction to Earnings Inflicts Potentially Significant Technical Damage

Below is what we discussed Monday (Aug 3) about Tesla Motors, Inc. (TSLA) and the potential for the emergence of a huge top formation if negative price action emerged in reaction to earnings.

In fact, such negativity has developed, with the price structure pressing below key, prior-pullback support at 250.79 right to a test of the rising 200-day EMA, now at 235.25.

A sustained break below the EMA will point TSLA towards a retest of multi-month support between 185 and 170-- as the top formation matures. MJP 8/06/15

On Aug 5, after the close, TSLA will report its latest corporate earnings. From its low at 181.40 to its recent high at 286.65, TSLA climbed 58%, which begs the question as to whether or not the prior advance discounted whatever TSLA is going to report on Wed PM?

We also have to wonder if the pullback from 286.65 (July 20) to 250.79 (July 27) represents a completed minor correction within a larger, incomplete upleg?

All I can say right here is that it had better be a completed pullback at 250.79 because if that low is violated and sustained, the big-picture pattern in TSLA will begin to resemble a giant head and shoulders top that will point TSLA towards a revisit of its major support (neckline) plateau at 200-180.

This should be interesting, and consequential for TSLA. MJP 8/03/15