TSLA Trend Break Short Idea

١ أغسطس

I've been covering TSLA a lot lately due to the potential breakout from a major 2.5 year downtrend. This is a different look at a shorter term uptrend, which is more bearish confirmation. I was conflicted about TSLA when it first broke out of the major trend from 2021, but I did long it in case it held and kept going.

If it had held above that trendline, I would have fully expected a new big leg up. However, it only held for a week or so and has now failed miserably. It closed today back under the trendline. I see this is as highly bearish fakeout and that's why I began shorting it from there. Fakeouts like this often lead to strong momentum in the opposite direction, but it can be volatile and doesn't happen in one day.

It was going to be a hard mover either way and I think it may have finally chosen it's direction. Like I said, if this shorter term uptrend breaks to the downside now, it'll be more confirmation to hold my puts. First target is the lows from June around $170.