Tesla (TSLA) shares closed below a key level of techncial support today, an area that I highlighted earlier in the month.
This zone is significant because of prior price price action but also because it contains both the 50 and 200 day moving averages. The MacD has made a bearish crossover and is tracking lower and below its center line, and the vortex indicator, which is designed to identify early shifts in trend, has made a negative crossover. Chaikin money flow is well into negative territory and suggesting the stock is under distribution.
The close near the session low helped form a decidedly bearish candle and the stock may be on course to retest the lower end of the declining channel pattern. This would complete another cycle of lower swing highs and lower swing lows.