EV Icon Overheated?
Will round number theory be the speed bump that stops TSLA in its tracks? Bearish candlesticks have been inaccurate during the last 6 months as markets blew through many of them. Tesla is no exception, but at some point they will matter again, and with the stock struggling near 2000, the candles may take on more significance. Could a blow off top be happening, with the more than 53% jump top to bottom the weeks ending 8/14-21 that were “split inspired”? PRICE action supersedes all else to a technician, but one could easily see a move coming like the one that occurred during two weeks in mid July which saw a violent, but brief move lower of nearly 450 handles. It is still premature as it has been just a few sessions hugging the 2000 figure, but just 10 weeks ago when it spooned the round 1000 number, PRICE action was very smooth. Remember if this bearish wide and loose PRICE action persists that is how tops are normally formed. Of course TSLA is no ordinary stock, and one should look to enter this name on the long side, if there is another couple hundred handle decline. A touch of its rising 50 day SMA, a line it has not been in contact with for 5 months would make a sensible start. It is still 600 handles above that moving average but it will catch up rapidly, almost as expeditiously as PRICE has gone parabolic.