In today’s stock of the day, let’s take a look at Tesla, a trader-favorite that’s now showing its first technical crack.
The chart reveals a symmetric triangle pattern, marked with green lines, that has been developing for several weeks. As of today, Tesla is breaking the lower boundary of this formation, and the breakout is marked in red.
Two scenarios are in play:
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This could turn into a bear trap, where the price quickly recovers and moves back inside the triangle. If that happens, it would be a strong long-term buy signal.
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But with sentiment on the broader market clearly negative, and indices under pressure, the odds are currently tilted in favor of a legitimate downside move.
Everything hinges on today’s close. If Tesla ends the session below the green support, this confirms the breakout and activates a technical sell signal. Monday’s candle will be key in deciding the next direction.