Alerting Members To TSLA's Precarious Technical Position
by Mike Paulenoff
October 16, 2022 • 5:11 PM EDT
During the final hour of trading on Friday, TSLA broke its prior corrective low at 206.22 from Thursday, and then proceeded to press still-lower, breaking a much more consequential low at 205.81 from May 25 -- the low from which it had rallied 50% into the broader-market August recovery highs.
Heading into Friday's closing bell, Mike Paulenoff posted a chart alert to MPTrader members about TSLA's precarious technical position, noting:
"TSLA reports earnings on 10/19 after the close... Today's failure to follow through from yesterday's upmove from 206.22 to 226.26 followed by a sharp downside reversal that pressed through BOTH yesterday's low at 206.22 AND the May low at 205.81 is VERY UGLY ACTION and triggered NEW DOWNSIDE PROJECTIONS to 185-188, and if violated, then to 170-175 (see my attached chart) prior to my expectation of the emergence of a sustainable recovery rally effort... The reaction to earnings likely will be a significant directional catalyst for TSLA."
In Friday's aftermarket trading, TSLA traded down to 204.16, last seen back in June 2021, which left TSLA "dangling" beneath a newly-formed 5-month plateau of prior lows that has now morphed into very challenging resistance from 206 to 212.
What's next for TSLA? The resistance level will likely will remain a serious barrier to any sustainable rally effort ahead of Wednesday's post-market earnings report and conference call.
In addition, purely from his pattern and momentum perspective, Mike is now looking for a very significant pivot low in TSLA from 200 down to a potential capitulation spike low into the 170-175 target zone either ahead of or in reaction to Wednesday's event and opportunity risk period.
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Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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