• TSLA lost its key support at $187, and it triggered a H&S chart pattern in the daily chart; • In the 1h chart, it failed in breaking its resistances, and the bias is clearly bearish, as it is doing nothing but lower highs/lows; • Even if TSLA does a bullish reaction, it would have to face multiple resistances, making a bullish thesis more unlikely; • First, in the 1h chart, there are the 21 ema and the purple trend line connecting the previous tops; • The $187 is a key point visible in both, 1h and D charts (it is the neckline of the H&S pattern in the daily chart); • In the daily chart, there’s the 21 ema, which TSLA for the first time since January; • In order to reject this bearish thesis, TSLA would have to do an amazing reaction, breaking all these resistances – so far, there’s no such reaction; • Keep in mind that TSLA just triggered an H&S chart pattern in the daily chart, and a pullback to the next resistance area is plausible. According to Bulkowski, H&S patterns have a pullback ratio of 68% (Encyclopedia of Chart Patterns); • I’ll keep you updated on this every day.
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