$TSLA.US$ Tesla did indeed hit my 1243 fibonacci price poin...

Tesla did indeed hit my 1243 fibonacci price point and rejected slightly off it.

That is a key take profit zone for many traders who are playing tesla for the recent rally.

Will we start to see a pullback on tesla? I think so as QQQ is also due for a pullback.

Tesla has been hard carrying QQQ the whole week making QQQ break fibo after fibo levels it seemed like the market was never gonna pullback.

But yesterday we saw QQQ struggle at the 402 fibonacci. In fact it was stucked at 400 range and lost almost 0.7% after touching the high of 400. Closing flat for the day.

My guess is that tesla will probably pullback soon which will help pull the nasdaq down to a more healthy level before pushing it up one more leg.

Tesla has 2 key supports which is 1100 range and also the positively sloping upward 20ma at 990 range.

Will it hit those 2 supports before making another leg for new high? Do not bet on it. As tesla recent bull run has been so crazy it has only been flying higher and higher. Tesla may even not pullback but only start bull flagging at this level before continuing the next leg up.

Why bull flag? To eat up the options players as there has been huge amounts of calls due to recent rally and also big amount of puts for those betting on an overdue pullback. Market makers may bullflag tesla to eat up all the options expiry before pushing it up another leg. Like I said, high open interest option strikes will usually expire Out of the money. Which this week was the 1240 price. And indeed we closed below 1240.

So as always, trade safe & invest wise!