On January 24th we reviewed the charts of Tesla (TSLA) and wrote that "TSLA has broken its December low. Prices could steady and close above the December low, but the damage is done, in my opinion. TSLA could bounce and long-term investors could be the one's buying but I do not expect TSLA to show much independent strength in the face of this broad market weakness."
It has only been a few days but let's check on this market leader again.
In this updated daily bar chart of TSLA, below, we can see that prices are retesting the low of the other day. Today could be a new low close for the move down. Prices are below the declining 50-day moving average line but still above the rising 200-day line.
The On-Balance-Volume (OBV) line continues to look weak and the Moving Average Convergence Divergence (MACD) oscillator has fallen below the zero line for an outright sell signal.
In this weekly Japanese candlestick chart of TSLA, below, we can see a lower shadow on the most recent candle but if weakness persists this week it will be replaced with a red candle. The rising 40-week moving average line is getting dangerously close with an intersection around $810 or so.
The OBV line is slowly weakening. The MACD oscillator has crossed to the downside.
In this daily Point and Figure chart of TSLA, below, we can see that the software is projecting a downside price target in the $760 area. A trade at $844.04 will refresh the downtrend.
In this weekly Point and Figure chart of TSLA, below, we can see a lower target in the $486 area.
Bottom line strategy: TSLA bulls will try to defend the $855 level but a break of this zone is likely to precipitate further losses. If prices bounce I do not expect the bounce to last too long.
