Tesla false breakout

5 mar 2019

Tesla stock appeared to break the downtrend line a few days back at the end of a symmetrical triangle. Shortly after a hanging man candle was posted and prices quickly reversed to break back through the downtrend and then through the uptrend line of the symmetrical triangle. This is in line with the trend of the Ichimoku cloud as prices and lagging span remain below the red cloud. I believe the quick crossover up and then back down of the conversion/base line and strong candle breaking down the uptrend line present a good entry into shorting the stock. Broken resistance at $300 would negate this idea, while $250 appears to be the next level of support.