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Charting Tesla's Path of Least Resistance

Tesla ( TSLA) is kind of like Apple ( AAPL) in that it is so widely followed by analysts, investors and traders around the world. The industries are completely different but the attention to every wiggle is the same.
Let’s check the charts of TSLA to see the road ahead. 

In the daily candlestick chart of TSLA, below, we can see some bearish clues. Prices have stalled at least three times in August and September at the $315 area. TSLA has been unable to stay above the 200-day moving average line for long and just closed below it and the 50-day moving average line.
Trading volume has been weak in September and slower than the pace in August during the prior $315 tests. The On-Balance-Volume (OBV) line made a lower high in September versus August even though prices made equal highs — this is a subtle bearish divergence.
The Moving Average Convergence Divergence (MACD) oscillator also made a lower high in September for a more noticeable bearish divergence. 
In this second daily candlestick chart of TSLA, below, we want to point out the lower high on the 12-day price momentum study (lower panel) for another bearish divergence. 
 
In the weekly Japanese candlestick chart of TSLA, below, we can see three distinct upper shadows above $300 from late July. Traders are rejecting the highs for TSLA.
The weekly OBV line is pointed down and the MACD oscillator is narrowing from just below the zero line telling us that the trend strength is fading. 
 
In this daily Point and Figure chart of TSLA, below, we can see a potential downside price target in the $234 area.  
Bottom-line strategy: I have a friend back in New Jersey who has taken me out in his Tesla a number of times and it is a great experience, without a doubt. However, the stock price is another story. Avoid the long side of TSLA for now.

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