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Tesla Chart: Two Dueling Patterns to Keep an Eye On


From the Buzz & Banter: The electric-car maker could be ready to move.

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Tesla (NASDAQ:TSLA) turned its 3-day chart down for the first time since the last major swing low on January 13, which was just before an explosive move.

Note the Lighting Rod (large-range outside day) on January 14.

So, the behavior in Tesla from here will be important to observe.

I am watching two dueling patterns:

First, there is a mini Cup & Handle, which is potentially bullish.

Second, Gapfill from 2/25 ties to a price of $220, which in turn ties to the rising 20-day moving average.

As you may recall, $220 was the projection from January according to the Square of 9 Chart, which you can see here (subscription required). If Tesla declines toward its 20 DMA and satisfies Gapfill, faltering below $220, the implication is a deeper sell-off.

Belows is a daily Tesla chart for this year with its 20 DMA.

Twitter: @JeffCooperLive

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No positions in stocks mentioned.

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