Tesla Attempts To Recharge Into This Pattern After Musk Disappoints Investors At Event: What's Next?

Tesla Inc (NASDAQ: TSLA) was trading up over 2% on Friday, attempting to break back up into a triangle pattern, which Benzinga pointed out on Wednesday.

The EV giant broke down from the triangle on Thursday after receiving a bearish reaction to its Investor Day event, which took place after the market closed the day prior. One buy-side analyst, Gary Black, described the event as “long as aspiration, short on detail” and believed Tesla CEO Elon Musk avoided providing details around the demand for its vehicles.

The post-event dip was bought on Thursday and on Friday, the bulls were attempting to take back control of the stock. The bulls have more work ahead to prop the stock back into the triangle and avoid a longer-term downtrend.

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The Tesla Chart: When Tesla broke down from the triangle, the stock negated its small uptrend within the triangle by printing a lower low. For a downtrend to be confirmed, the stock will need to print a lower high, which could happen at the lower ascending trendline of the triangle, if the stock is unable to regain that area as support.

• If Tesla can work its way back into the triangle, the stock will regain support at the eight-day exponential moving average (EMA), which would give bullish traders more confidence going forward. On Friday, the stock gapped up above the 21-day EMA, which is a positive.
• If the stock trades back into the triangle, Thursday’s bearish price action will serve as a bear trap. If that happens, Tesla is set to meet the apex of the triangle on March 14, and traders can watch for another break from the pattern on higher-than-average volume to gauge future direction.
• Tesla has resistance above at $200.51 and $213.13 and support below at $190.41 and $177.59.

Read Next: Tesla Model 3 At $25,000? Cathie Wood Details How EV Maker Can Afford To Drastically Cut Prices

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