Tesla Inc (TSLA) Bearish Stock Chart Signal Forms

Shares of Tesla Inc (TSLA) have formed a bearish stock chart signal. The signal is a topping tail candle on the weekly chart and is a nasty sell signal. Tesla Inc has surged from $250 to almost $550 in less than three months. This meteoric rise has been impressive but looks to be over in the near-term. A classic retrace off this topping tail should bring the stock back to a Fibonacci retrace of 38.2% at $405.00. The bearish stock chart signal is more powerful on the weekly chart than if it formed on the daily chart. While tough to find shares to short, puts are a solid option. I expect the target price to be reached within three months.

(Click on image to enlarge)

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.