Tesla – Inverse Head and Shoulders Pattern

By | June 16, 2014

We wrote about the small triangle pattern on the Tesla (TSLA) chart on Saturday and noted compression in the Bollinger bands suggested the potential for a volatile move. The stock saw that volatility to the upside today, with shares jumping nearly 9% on strong volume.
Now a new pattern has emerged on the daily chart, a rudimentary inverse head and shoulders continuation pattern with neckline resistance in the $220.00 area. This pattern projects back up to the February highs, but the stock still has some work to do to establish the validity of the formation and the breakout.

16. RVT TSLA chart

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