The Technical Set-Up in TSLA Argues That it has Unfinished Business on the Downside After the SCTY News

Despite its 10% to 12% drubbing in reaction to its intention to buy SolarCity Corporation (SCTY), my pattern and momentum work argue that the price structure has unfinished business to the downside prior to embarking on a sustainable rally effort.

While Tesla Motors, Inc. (TSLA) could bounce up to 205-210, the strength should be considered a recovery rally within a dominant, larger, corrective downtrend phase off of the April high at 269.99, that projects next into the 185-180 target zone.