Article by Investazor.com
If you don’t remember our last analysis on Tesla Motors (Is Tesla’s Engine Still Going?), here you have an updated. The price of this stock got pretty close to the 200.00$ per share, but did not touch it. After a rejection the sellers managed to push the price back to a key support at 158.50 dollars per share.
Chart: TSLA, Daily
In the current state we can see a Hammer, candlestick pattern, which was formed on some higher volume, false breaking the support. If the price will break the 170$ level, we could see a rally back to the latest top or even to 200$ per share.
On the other hand we should not exclude the possibility of a longer correction move. If on a daily basis, the price will close under 158$ per share a Head and Shoulders pattern would be confirmed. The targets for this pattern are situated at 140.00$ per share and at 123.00$ per share. If the full target of the H&S will be hit, would mean a loss of 22.37% of the current price.
Our preferred scenario is still on the up side, taking into consideration the current trend. The trade setup includes a buying level at 170$, Stop at 153$ and a Take Profit at 200$ per share. Better signals could come after the companies earning report will be released. Until then keep an eye on the price action and the volume patterns.
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