A couple of weeks ago I pointed out some positives for Tesla in the chart and news flow. Now things have changed and price is confirming it's trend lower. For a quick review...
Back in December, Tesla formed a head and shoulders top. Then, post earnings, a possible head and shoulders bottom setup morphed into a symmetrical triangle. This pattern is starting to break down and it screams caution from the long side.
This pattern after 'the' (reversal) pattern is a strong signal that a new trend is developing. In this case, it's lower.
Now on the open, the market has lost it's horizontal support and a sharp break lower may be under way. It's prudent to respect your stops!
Trade 'em well and thanks for reading!
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