Tesla, Inc (NASDAQ: TSLA) A potential breakdown of a key uptrend support line to retest the previous resistance zone now turned support at US$154-168 as:   

1. The price broke down the recent consolidation zone at 202-216 and key uptrend support line, which has supported the price since November 2020 on 7 November, which gives us a bearish signal.
2. The Moving Average Convergence Divergence (MACD) technical indicator continues to display decreasing momentum and is close to a bearish crossover. The Bollinger bands are also expanding after a period of low volatility contraction, signalling possible downside momentum to follow through.
3. From an Elliot wave perspective, the stock is currently on a 5 wave downtrend formation and could be on the 5^th wave down. The projected wave 5 target would be at US$154.65, which is a 61.8% extension of the wave 1 from US$313.80 to US$270.31 and wave 3 from US$289.00 to US$198.59 combined. This downside target is also confluent with a previous horizontal resistance level now turned support that acted as resistance from September-November 2020.

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

CHART LEGEND

Red box = Resistance zone

Green box = Support zone