Image Source: Unsplash

Let's take a closer look at the chart for Tesla (TSLA), which is an important stock for the psychology of the market.

Consider this:

• It reached its Fibonacci level and was immediately repelled;
• It managed to fall to the trendline, finding support with the trio of Fibonacci levels;
• It bounced and hit the trio of Fibs above. However, a couple of weeks ago, thanks to the Morgan Stanley upgrade, it garnered enough energy to leap above all three Fibs;
• However, it only lasted in that zone about a week, not even matching its prior high (before the Morgan Stanley news);
• It then fell through all the Fibs again, rapidly sinking toward its trendline and falling almost $12 on Friday alone.

The bottom line: Watch out for that trendline. If it breaks, it will be the first failure of the entire 2023 trading year, and it could spell trouble for Tesla as well as the market in general.

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