TSLA is under bearish pressure. Monthly and weekly candles signal a possible decline. Immediate target – 500, but could be lower. Let’s explore the hypothesis.
The monthly candle formed a Bearish Engulfing. At the same time, RSI fell from the overbought territory.
This week, the stock rallied hard, trying to cancel the 8/20 EMA bearish cross, but was rejected at the 8 EMA line.
In the last hour of Friday trade, a healthy green continuation candle turned to a Bearish Harami, sharply shifting the odds to the dark side.
Odds: Strong Bearish
If in the next few days, the price reverts back below Thursday low of ~616 or below the 200 daily MA of ~600, the reversal would be confirmed and I would expect $TSLA to fall to the red/blue rectangle area. Red – higher probability.
Let’s see how June begins.
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