Battery Charge Needed:

One of the most widely recognized stocks of the last few years may be running on empty. Since hitting a speed bump at the very round 900 number on 1/25 it is now 36% off that peak. At those lofty 900 levels it was in the rough neighborhood of joining the exclusive trillion dollar market cap club, but obviously never made it. Last week registered its fourth consecutive WEEKLY decline, dropping more than 12%. The name has lost momentum in a big way, and let us remember TSLA is now the second-largest weighting in the XLY and is a top 10 holding in the S&P 500 (obviously has less of a drag in the latter). Its actions have implications, and there will be some stops placed here at the 200 day SMA, which should create some erratic behavior. I have personally never traded the name, but if I did going forward an undercut of the 540 area in the coming weeks, would have new investors seeing the “white in the eyes” off prior cult-like bag holders. That could possibly set up a future double bottom pattern, well north from the current location.

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