Key Tech Leader Is Kissing Underside Of Resistance

Published 04/30/2014, 10:23 AM
Updated 07/09/2023, 06:31 AM

 Tesla Motors

The Power of the Pattern on 3/5 reflected that Tesla Motors Inc (NASDAQ:TSLA), Google Inc. (NASDAQ:GOOGL) and Bio Tech (NASDAQ:IBB) were creating  bearish rising wedges. At the time of the March post TSLA was trading at $254 per share. The Power of the Pattern got pretty close to nailing a high in each of these important tech stocks.

Big Fall

Since the posting, TSLA has declined almost 20% (Google and IBB are down hard too) and broken below its steep rising channel above. Last week it created a bearish wick, looking like it made a very important kiss of the underside of resistance.

Now TSLA is at its 38% Fib level. IMHO, what TSLA does in the next couple of weeks is not only very important for this stock, it could well have an impact on the Nasdaq 100 as well. Tech needs TSLA, GOOG and IBB to create bullish patterns and turn higher ASAP.

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