One reader asked me to give a looksie to the Tesla (TSLA) chart to see what I could find and whether there is an edge there to trade.
Finding that edge was difficult at first as TSLA’s stock price is all over the place on the daily. But when I zoomed out some and evaluated it from the weekly point of view, everything seemed much clearer.
Frankly, TSLA isn’t looking too hot right now, and it is very possible that we see this stock deteriorate further. With the triangle pattern noted above, once it breaks down and below this pattern, it is very possible that we see the stock drop down into the 170’s where there is some price support between $175 up to $180.
With weakened market conditions to start the year, after we get that inevitable bounce out of the market, if the selling pressure starts back up again, then TSLA could be staring at an additional 15% drop from where it is trading at right now.
