Tesla Head and Shoulders at Resistance

The month of January saw a huge RIP on Tesla TSLA lifted by broad stock market bullishness and Artificial Intelligence buzz with the launch of ChatGPT (Tesla is widely considered an AI company rather than just a car company).

February saw this bull trend stall at major Weekly 50% Retracement Resistance (see below) at 213. Price has tested and respected this level in the past and I had been waiting for the trend to hit it. I entered my short on 2/9 (being early and being wrong are often indistinguishable). Now as the month of price action has continued it seems to have setup a Head and Shoulders pattern.

I noticed on 2/13 some buzz on social media the first significant pullback to the trend created. Many that had missed out on the January action began to FOMO in. This short term rally pushed price to the resistance on 2/15 and briefly broke it intraday on 2/16. However, price closed the Daily and Weekly bars below the major Resistance to confirm that it held.

Now this morning I received an alert for a Bearish Spike at the open. This spike high could be the creation of the Right Shoulder of the pattern.

The 213 Level is important because it is the 50% Retracement of the entire 2019 Low to 2021 All Time High. Price respected this level in summer of 2022; held it, reversed bullish off it, but failed to reach and make a new All Time High. Once it broke the level in November 2022 Tesla entered the "Valley of Risk". Now price has come back to test it from the underside as Resistance and so far the price action is showing signs of respect.

Additionally, the Bearish trend that began in September 2022 and ended with the start of the January 2023 rally has its own 50% Retracement right around this area to match.

Trade active:

Interestingly, on the 5 minute timeframe there was a Head and Shoulders pattern surrounding the 30 minute spike that triggered this article. It was a fractal pattern within a pattern. The Head and Shoulders are completing this morning as they nuke TSLA