On July 20, Tesla broke below the lower trendline of its ending diagonal. Following Q2 earnings on July 22, the stock fell another 5% in after-hours trading, confirming the breakdown with a decisive gap lower.
So, what should we expect over the next month?
Breakdowns from ending diagonals often lead to sharp declines. Trapped longs will likely rush to exit, adding selling pressure, and increasing downside momentum.
The first area to watch is $340, which may provide an initial level of support.
If that fails to hold, the next major support zone sits near $270.
The key now is not to assume either level will hold, but to observe how price behaves as it approaches them. The market's reaction at these areas will provide more information about the strength of the broader downtrend.
So, what should we expect over the next month?
Breakdowns from ending diagonals often lead to sharp declines. Trapped longs will likely rush to exit, adding selling pressure, and increasing downside momentum.
The first area to watch is $340, which may provide an initial level of support.
If that fails to hold, the next major support zone sits near $270.
The key now is not to assume either level will hold, but to observe how price behaves as it approaches them. The market's reaction at these areas will provide more information about the strength of the broader downtrend.
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Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.