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Well Tesla is taking another shot at correction like it did back in March -June of this year. I am not sure it is Tesla's fault...there seems to be an overall sentiment in the markets today for a pullback.
We have a double bottom breakdown which has stopped at a minor support at $246. There is a little stronger support at $242 but not by much...there is cascading supports to a stronger band of support from $216 -$220...the current resistance is at $254 - $256 for what it is worth...the price is not going back in theat direction anytime soon.
There is no indication here that the fall has stopped, in reality it is just beginning. Prior to Sept 22 it was just consolidation after the climb to $290. Note how the 50daySMA has acted as a resistance in the blue circle. The trigger for the realmajor fall is on Sept 22...see the decline of the Slow Sto and MACD and then the rapid rise in the BBwidth is the sell signal...the continued decline in Slow Sto and MACD and rise in BBwidth shows no sign of a reversal...confirming my thoughts that the current halt is not a real strong support.
Here we see no sign of bullishness...the CMF is in the mud and probably going further down...it is only a weak bear now though. The RSI has a negative slope crossing 50 becoming more of a bear. After a stutter step the DI +/- is bearishly diverging, it was sort of neutral bearish before...bearish as green was below red but neutral as they were running parallel
We see in this chart the price has entered a green cloud after flirting with the upper edge of the green cloud...the upper edge is now a resistance and the lower edge is a support ... falling below this cloud would not be good....and I firmly believe this lower edge will be tested in the next week. see the thin blue/red lines in the circle...no sign of those reversing their position soon.
the other two indicators are bearish the CCI more than the onBal Volume.
Conclusion
I believe over the next month this stock price will fall to the band of support at $216 - $220. It will be months before there will be any kind of reversal. The next financial report in in a few months may help but if it is not a good one....well it won't be good
Based on his recent quotes about Tesla delivering a driverless car next year, I believe that is likely true. He also mentioned he was glad he didn't tweet the other letter for the second surprise, and based on the "unveil the D" comments it might start with a V or a P if anyone wants to speculate
