Keeping You Ahead Of Tesla's Twists & Turns!
by Mike Paulenoff
June 13, 2020 • 5:09 PM EDT
We've been following Telsa (TSLA) closely in our MPTrader Trading Room, particularly in this past topsy-turvy week.
On Tuesday morning, after CNBC interviewed billionaire fund manager Ron Barron, I wrote that although TSLA remained well above its dominant March-June up trendline and no way indicated that the stock was reversing from its 11-week (166%) advance, the fact that the price structure was unresponsive to Ron Barron's bullishness was a potential warning signal that perhaps TSLA's relentless climb was nearing upside exhaustion. (See annotated chart.)
However, what Ron Barron could not accomplish in his uber-bullish outlook for the company on Tuesday morning was accomplished the very next morning when Elon Musk told investors TSLA was ready to rev up production of its electric heavy duty semi-truck. Musk also announced some game-changing advances in battery technology, hinting that the company is getting closer to the "million mile battery" on a single charge!
Musk the master promoter again killed the shorts, as TSLA surged to a new all-time high and, as we wrote, now looked poised technically to "go vertical" towards 1130/50 as long as it remained above my 934 line-in-the sand support. TSLA did climb to a new all-time high at 1032.00 very late on Wednesday ahead of Thursday's huge market sell-off.
On Friday, with TSLA trading 2 cents beneath my first line in the sand at 934, I wrote that a close beneath 934 will point TSLA directly to a test of its dominant March-June support line, now in the vicinity of 905. TSLA closed the session and week at 918.55, staring at a confrontation with its dominant March-May up trendline amid very negative momentum indicators.
What are the next levels to watch if Tesla breaks lower?
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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More Top Calls From Mike
In our Top Call article a month ago, we told you about how Mike Paulenoff called AAPL's upside continuation, with the expectation that the stock could extend a little higher before upside exhaustion.
AAPL, indeed, went on to stair-step higher to reach a high of 157.26 high last week, overshooting the upper boundary of Mike's 153-156 projected high-zone by just 0.8%. It then proceeded to initiate the expected bout of weakness that accelerated to the downside this past Friday.
On August 11, Mike Paulenoff alerted MPTrader members to a significant upside reversal signal in AMZN.
Mike wrote that "the 500 point decline is nearing downside exhaustion," noting a preferred downside target zone of 3180-3200.
Fast-forward to August 20, when AMZN pressed to a new multi-month corrective low at 3175.76.
On August 3, Mike Paulenoff alerted MPTrader members to the developing setup in AAPL that also would eventually impact the broader market:
Mike wrote: "AAPL continues to levitate within a high level digestion period and pattern off of its ATH at 150 hit on 7/15. All of the action since mid-July certainly resembles a Triangle pattern atop the May-July upleg from 121.68 to 150.
Probably the first price pattern both fundamental and technical investors learn to recognize is a Head and Shoulders Top. Rightly or wrongly, it is the Holy Grail of technical formations, striking fear into holders of the stock, index, ETF, or commodity that exhibits such a technical set up, while eliciting an opposite reaction from put owners and short sellers who anticipate huge gains captured by impending weakness.
Last Wednesday (July 14), with AAPL trading at 148.65 but off of its new all-time high at 150, Mike Paulenoff alerted MPTrader members to potentially consequential yellow caution flags emerging in his technical setup work.
Mike wrote:
This morning, JPM raised its Target Price to 175, one day after Citigroup raised its Target Price to 170. Do I hear 180... 185? Crickets at the moment. The Street is falling all over itself in its bullish view of AAPL.