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Technical Update - Tesla breaking key support confirming double top pattern. $200 price in sight

Technical Update - Tesla breaking key support confirming double top pattern. $200 price in sight

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Tesla closed Friday below key support. Double top pattern confirmed pointing towards lower levels. No strong support before around $200

 
Tesla closed Friday a few cents below the key support at 265.74 and is at the time of writing below the 0.618 retracement of the May to August uptrend.
Unless Tesla can close back above 265.74 downtrend is confirmed. A down trend that can push Tesla to test next key support at around 206.86
RSI is below 40 i.e., showing negative sentiment supporting the bearish picture.
By the close below the 265.74 support Tesla has confirmed the Double Top pattern with a potential target of around 218, indicated by the vertical arrows and horizontal dashed line.

Tesla seems to be trading in a wide falling channel - see weekly chart. Weekly RSI is negative since it hasn’t managed close above 60 after being below 40 in earlier this year.
If Tesla closes below key support at 206.86 there is support at 180.40
To reverse this bearish picture Tesla must close above 314.67.



Source: Saxo Group
Note: The author is having a short position in this stock

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