Tesla, Inc (NASDAQ: TSLA) A potential bounce to retest the previous support turned resistance zone as:   

1. The formation of a spinning top candlestick pattern on 12 October at the confluence of a trendline support and horizontal support zone suggests recent bearish momentum is fading and the trend could be due for a short term reversal.
2. Bullish divergence was also observed where the Moving Average Convergence Divergence (MACD) technical indicator displayed decreasing bearish momentum while price made a lower low into the support zone.
3. The price could reach the resistance level near 260 to fill a price gap where it meets the 50% Fibonacci retracement level using the swing high of 313.80 and swing low of 211.51 as points of reference. Elliot wave also suggests the stock could make a wave 4 pullback into the resistance zone in the current downtrend where the 260 price level is a 61.8% Fibonacci retracement level using the wave 2 highs and wave 3 lows, given the current wave 3 has reached a 161.8% extension.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone