Tesla's Chart Looks Horrible


Some important technical damage has been done in TSLA's chart

Every once in a while we hear the phrase, “This development is a dagger to the heart of…..” We hear it in politics, in sports, and even sometimes in the market place. We don’t know yet if this week’s new on Tesla is quite severe enough to be called a “dagger to the heart”, but it is certainly a “dagger to the chest” of TSLA…at least on a technical basis. In other words, this week’s reaction in the stock to the poor earnings report and the exit of its second most important executive…has given us a situation where it can certainly be called a “dagger to the chest”. The action in TSLA this week might not be a “dagger to the heart,” but some genuine damage has been done to several internal organs.

Yes, 50% rallies CAN be "failed rallies"

As I highlighted in a CNBC interview, we can see this damage by looking at three charts on TSLA. Looking at the first chart, it shows that TSLA has obviously seen many, many very large swings over the past five or six years (in both directions). As scary as the 20%-50% sells have been since 2013, they have always been followed by powerful rallies…that took TSLA back up to (or at least very close to) its old record highs! That’s right, believe it or not, there have been ELEVEN declines in TSLA of 18% to 52% since the second half of 2013 (with eight of them giving us drops of over 30%)…but each one has been followed by a rally back to its old highs…UNTIL NOW!

Click here to see the CNBC interview: https://www.cnbc.com/video/2019/07/25/this-key-lev...

In other words, even though TSLA’s 50% rally off the June lows seems to be very ...

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