TSLA had a great run up last year. It had respected long term trendline support very well. It tried to break the trendline in February 2022 but faced a strong buying pressure at 700 level. Buyers jumped in and took the price back above the trendline. This buying momentum was short lived which you can see from highlighted ellipse on the chart(Candle bodies got smaller and smaller). Price ended up making lower high which shows weakness in bullish momentum. Price reversed strongly and broke down below long term trendline support which indicates trend reversal.TSLA is forming Butterfly harmonic PRZ pattern and it just got activated this week when the price closed below the neckline(B level). Based on Butterfly harmonic rules, the price would come down to level D(Price Reversal Zone) and reverse from there.
TSLA was also in a ttmsqueeze on a weekly timeframe and is just getting out of it, so momentum could be seen for few weeks.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.