Tesla Closing in on Bat Pattern’s PRZ

2 jul 2023

Tesla (TSLA) finished June strongly, adding an eye-popping +28.4%. This upside momentum, however, has unmasked a possible ceiling on the weekly chart: a harmonic bat pattern Potential Reversal Zone (PRZ) between $300.79 and $283.88. The aforementioned area is made up of a deep 88.6% Fibonacci retracement, an ‘alternate’ AB=CD formation (1.272% Fibonacci projection), a 200% extension of legs B-C, a 61.8% Fibonacci retracement drawn from the high of $414.50, a trendline resistance taken from the same peak and a horizontal resistance level. In addition to the Relative Strength Index (RSI) nearing overbought space, the PRZ offers substantial confluence and is thus a technical resistance worth adding to the watchlist this week/month.