TSLA Tesla Weekly Chart; Overbot; Negative Divergence; Tesla Topped-Out on Weekly Chart

Mighty Tesla is topping-out on the weekly chart. I am sure all the Musk fanboys will appreciate the chart. At least now it makes sense why Keystone is not invited to any parties. Anyhoo, TSLA is cooked on the weekly basis. You can short it at will going forward for a few weeks. TSLA prints 6 weeks of matching price highs while all the chart indicators slope lower and lower, negatively diverging away from price that is flat or rising; neggie d.

There is no more fuel in the tank on the weekly basis. Tesla is going to drive into a ditch going forward on a weekly basis say now well into March. Price is extended way above the moving average ribbon so a mean reversion is needed and a move back to the 20-week MA support would be 615, and rising.

There is a strong congestion zone late summer into Fall. That's right, it was the ascending triangle, let's stick that on there in blue, see it?, so the vertical side of the triangle is 3 hundo to 450 so 150 difference so the breakout at 450 targeted 600 which was achieved. But price may want to come back down to revisit that congestion zone of strong support.

The TSLA monthly chart is in negative divergence as well except for the histogram and MACD line. When the candlesticks begin tomorrow, look at the monthly chart to see if the MACD goes flat, if so the long-term multi-week and multi-month top is in for Tesla. Otherwise, the weekly downdraft will begin and after several weeks of down, price will recover again due to the MACD on the monthly chart. At that time the monthly chart would be expected to be in full neggie d and the long-term top would be in.

A multi-week down move will begin now. Keystone has not been in TSLA for a couple years, either way, but has played it long and short over the years. It will probably not be played but if you were someone that has wanted to sort TSLA but did not know when to jump in, the weekly chart is set up perfect for you now, you can give it a go, but keep a tight mental stop on it.

Probably in a week or two, Keystone will be able to tell you when the long-term top for TSLA is in, if anyone is interested in it. When TSLA tops out anytime over the coming weeks, or say month or two, maybe three tops, it will likely be a long-term top for Tesla. It may sound nutso but that is what the charts say, take it or leave it.

Keystone's 80/20 Rule says 8's lead to 2's so closes above 8 hundo opens the door for 12 hundo to print perhaps that is the plan for the monthly chart in a month or so, but, perhaps not. Tesla hit a ceiling and will need to punch up through. The weekly chart above says it will not happen now (unless some unknown news is announced overnight; CEO Musk is likely reviewing this negative analysis and telling the underlings to come up with some joyous Tesla news before the opening bell tomorrow morning).

It will be interesting to see how far back TSLA wants to retreat on this multi-week selloff that is about to begin. Why would you want an electric car when there is a gas station on every corner? 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 Sunday, 2/21/21: TSLA drops -4.3% after the chart above was posted. It has only just begun dropping. Maybe Musk should not be investing money in bitcoin but instead focus on doing his job at Tesla. In a few days, TSLA fans are likely going to be screaming for answers.

Note Added Friday Morning, 2/26/21, at 6:28 AM EST: TSLA crashes -31.2% in 19 days. One-third of Tesla's value gone at the drop of a hat. ARKK drops from 159.70 to a low at 126.81, a -20.6% crash, in only 6 days. ARKG crashes -20.8%.