TSLA: Path Of Least Resistance Is Lower

Mike Paulenoff By

TSLA investors did not react positively to Musk's underwhelming Investor Day on Wednesday.

We discussed the vulnerable technical setup yesterday morning, identifying 199-200 as the initial technical warning level that would leave TSLA vulnerable to downside continuation toward a test of 4-week support lodged from 191.60 down to 188.40, which if violated and sustained, will morph the near term pattern into a Distribution Top formation.

Fast-forward to this AM's pre-market, we see that in after-market action yesterday TSLA nosedived below 199-200. The selling pressure has continued into this morning's trading, to a corrective low at 185.82-- beneath my 4-week support zone that now serves as resistance from 188.40 to 191.60. As long as any forthcoming recovery strength is capped in or below the resistance zone, TSLA's technical setup will remain on a path of least resistance to the downside to my two lower optimal target zones of 170-175, and if violated, then to 158-162... Last is 186.75

  Matched “”
x
Take Advantage Of Our Free
7-Day Trial, $71st Month Offer!
  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!