Tesla (NASDAQ:TSLA) stock has been charging higher since the lows of last May, as it has rallied from $200 a share to nearly $800. Is it about to run out of juice?
This chart looks at Tesla over the past 9 years. It has spent the majority of the past 7 years inside of bullish rising channel (1). It touched the bottom of the channel last May, when the powerful rally got started.
The rally off the May low has TSLA testing the top of the rising channel as its Fibonacci 261% extension level of the 2016 lows and 2017 highs at (2).
While testing the underside of the channel and the 261% extension level, Tesla (NASDAQ:TSLA) may be creating a very large weekly bearish reversal pattern near mid-week.
I’m wondering if this is an 800-pound resistance test. Will the bearish reversal pattern still be in play at week's end? Is TSLA completing an “Eiffel Tower” topping pattern at these resistance levels?
Where the stock finishes the week should go a long way toward giving us a clue to the answers to these questions.
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