JUL16 2206EST. Shares of the Icarus-emulating Tesla took a dramatic tumble today, with price declining steadily throughout the day, then showing what appeared like a selling climax in the early afternoon, and finally heading lower still.
The one-minute candles chart is below. $119.6 was a notable morning support level which, when breached, provided a sound short-sale opportunity. The same could be said of $117.8. Next up, $114.8 was a strong support/resistance level from several weeks back (marking the May high, as well as consolidation support on July 3), but it only held today for the lunch hour.
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| TSLA (Tesla Motors). Jul 16, 2013. 1-minute candles. |
Capitulatory selling occurred around 13:30, evidenced by a steepening of price descent and by the heavy volume (the highest of the day, all the more notable as it occurred during the normally sleepy midday). Yet this climax did not deliver price to the relatively well-defined, hourly-candles trendline, which is currently around $107; as such, bulls were reluctant to commit capital, and the sell-off headed lower.
In the last 90 minutes of the day, price action changed somewhat. Bulls were able to engineer a higher high and a higher low, which marks the tentative beginning of a new uptrend (but, of course, there is no guarantee that it will last).
