Danjuma
It will also determine if we may get a chance to buy sub 100/share TSLA, if price gets absorbed at the aforementioned resistance levels.
The Bullish Scenario
The situation with the bullish narrative is akin to a herd of wildebeest crossing a shallow water body, with crocodiles below the surface.
Migrating wildebeest in midair leaping into the dangerous Mara River
Each close above above the resistance levels leads higher, failed closes and absorptions will result in lower retests.
Possible support at 200 and 150 area could support price in the event of a drop and restart another markup, but we may be in a distribution targeting 100 first.
Retest and failure to close below 200 or 150 would be a support but it could be a weak one and play a part in the consolidation.
You may read our article about the evidence of demand we found in the price action of TSLA, just before its investor day earlier this year.
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The price range of 198 to 108 was the first resistance and also the current low of the drop from the all time high of 414.50.
TSLA Monthly Chart
With the rally underway, a look at some of the price areas that could cause some problems for the bulls, sending price back towards 100.
The Bearish Scenario
The exchange of the guard or continuation will likely occur at the prices highlighted in the chart.
257, 314, 318 and 384 are potential resistance areas to watch.