Tesla Stock: Will The Bubble Burst For TSLA?

Tesla TSLA bubble

The “champagne cork” rally could be over for Tesla stocks (TSLA)…

Since its incredible rally from April, Tesla had risen by 390% to its peak in September of this year.

But could the bubble be about to burst on TSLA? It all depends whether we can break some key price structures on TSLA. Currently it has already closed below its 50 daily moving average, a level of support which puts the edge towards the bears.

We are also seeing a bearish head and shoulders pattern develop. If Tesla is going to be able to maintain this rally, it needs to protect $158.50 – the lows that formed in September and October.

However, one could argue that a retracement to this rally was overdue. A 38.2% fibonacci retracement level could take TSLA to $133.38 and a 50% retrace could take it to $114.59 (see chart below):

Tesla TSLA Fibonacco levels

Do you agree with this assessment? Leave us your comments below.

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4 Comments

  1. Nathaniel Wotring
    October 29, 2013 at 2:52 pm

    I have made a few bucks here and there with TSLA. Wishing that I bought in at $35, I continue to look for new areas to jump in. Unfortunately, as you have pointed out in your blog, I think it might be time to short TSLA.

  2. Pingback: Alessio Rastani i TSLA | Tehnicka analiza Crobexa

  3. Will Ebiefung
    October 30, 2013 at 1:56 am

    I dont normally trade on technical analysis, but the stars seem lined up for a short position on TSLA.

    If it breaks past resistance its a screaming short.

  4. Julie
    October 30, 2013 at 2:23 pm

    One day later, $158.50 was broken intraday and price reversed back up. What does this mean Alessio?

    Best wishes,

    Julie

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