One of the most widely followed stocks, TSLA – Tesla Motors, is about to reach a very critical chart juncture. The CEO Elon Musk is famous for his involvement in SCTY – Solarcity and SpaceX. Everything looks bright, like the iconic Tesla logo:
Let’s take a look under the hood and see what a simple and easy to understand technical analysis video of TSLA’s stock chart can reveal:
The key takeaways are:
- The weekly chart is still in an uptrend.
- A complex bearish head and shoulders pattern has formed.
- Price is trading below the weekly moving 30 average in blue.
- A right shoulder might be in the making.
- If the uptrend breaks it is best to protect your position.
- If the pattern triggers the purely technical price target could be devastating.
Conclusion: Due to the very bearish technical price target, the main risk for TSLA holders is to give back a big portion of their profits. You can protect yourself by selling at the various price levels I outline in the video.
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