TSLA Tesla Weekly Chart Overbot Negative Divergence Sideways Channel

TSLA is a clear outperformer running from under 20 to 272 in four years, +1260%. In the last 17 months, price moves from 40 to 272, +580%, a seven-bagger. The red lines show the negative divergence, overbot conditions and rising wedge that created the February-March top and spank down. The histogram wanted to see another high so price came up for that higher high. With the new all-time high at 272, the dark red lines show universal neggie d across all indicators.

Price has also pegged the upper standard deviation line at 269 so a move back to the middle band at 222 is on the table as well as the lower band at 175. The sideways range through 175-275 is a reasonable expectation going forward. In the VST, the MACD line and stochastics are trying to squeeze out some more upside juice for price but that may only delay the top for a week or two. If you enjoyed the trip higher and held on for these new highs, now would be the time to scale-out moving forward.

Perhaps Tesla is only one car fire away from its chart dropping. TSLA is no longer set up for the long side. Sure some more juice may be squeezed but it is like picking up nickels in front of a bulldozer. Projection is for price to top out in the week or three ahead and travel down to 175-190 where it will bounce and maintain the sideways channel. An 80 or 100-point drop over the weeks and months ahead would be a -30% pull back but no biggie considering the stock is up +580% over the last 1-1/2 year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 9/2/14 at 8:55 AM:  Stifel Nicolaus upgrades TSLA proclaiming a 400 price target. TSLA jumps +2.6% pre-market printing at 276.76. Analysts and television personality James Cramer say people are crazy that want to short Tesla. TSLA hits 282.40 in a +4.4% buying frenzy as the 9/2/14 trading day plays out. Shorts are covering creating upside juice.