Tesla (TSLA)

No doubt it was time for a pullback in Tesla. Relative Strength had reached absurd levels. The daily MACD remains incredibly extended, even after Thursday's pummeling. There remains an unfilled gap from early July that would need the stock to trade at $213 or lower to fill. The cup pattern that I had previously shown you has now started to develop a handle. That's actually a potential positive for the shares. Not that this handle still won't develop further. It could, but the pivot moves from the left side of the cup to the right side. That leaves the stock with a $271 pivot and a possible target price of $325. I may be on the other side of the Tesla trade at the moment, but I know enough not to add to that position or become married to the idea. Longer-term, the bulls may very well still have the upper hand. $Tesla(TSLA.US)$