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Tesla had a consistent movement to the downside with a tentative trendline since 21/04/2022. On 26/05/2022 the price had broken above its trendline but remained between the levels 792.42 and 623.30 since then. Now the price went back the lowest level S1 and bounce back until the middle of the range. Investor must focus to see if the price will continue to the R1 or fail and move back to the lowest level at S1.
S&P 500 is continuing falling since the start of the year, without a sing of support from the weekly point of view. Nevertheless, the price has formed a valid head and shoulder reversal pattern last week and managed to break its neckline on Friday afternoon. Now the price is retesting H&S’s neckline which is also a support level (S1) and is perfectly lay on the tentative trendline. Which is making that level more significant. Now investors must focus whether the price bounce on the S1 and continue the current short term trend or break below.
The information presented above is intended for informative and educational purposes, should not be considered as investment advice, or an offer or solicitation for a transaction in any financial instrument and thus should not be treated as such. Past performance is not a reliable indicator of future results.