TSLA stock price fell nearly 2.50% on Friday. Although technically trend remains bullish and there is no reversal confirmation, traders need to be cautious. Price reached once again the $760 price area and got rejected. This happened again back April and price then pushed lower towards $550.
Red rectangle - resistance
Blue line- support
Green lines - Fibonacci retracements
TSLA stock price got rejected at the red rectangle resistance where we also find the major Fibonacci resistance of 61.8%. At this retracement level we usually see trend reversals? It is too soon to talk about a trend reversal but surely Friday's price action is one indication that a reversal is imminent. Confirmation of a trend reversal we will have once price breaks the blue upward sloping trend line at $700. The RSI has not given any bearish divergence signal, but each time price reaches close to the 70 level we see a reversal. Bulls need to be cautious.The material has been provided by InstaForex Company - www.instaforex.com