Tesla’s scheme faces a major hurdle. Here’s what happens if you fail.

Tesla’s scheme faces a major hurdle.  Here’s what happens if you fail.

Tesla (TSLA) apple (AAPL) A handful of other stocks showed relative strength in the face of the recent decline in the stock market.

This may be coming to an end as the bear market is getting more intense, as it has started hitting everything in its path.

Tesla shares popped on Tuesday morning. Part of that strength was the broad rally in stocks, particularly in growth and technology stocks.

But the rally also came amid reports that the automaker had a “pretty big” production boost as the end of the third quarter is just days away.

While this is important, the stock will likely shrug off the news if things go wrong. Putting Tesla on the charts doesn’t help matters.

Trade Tesla Stock

In September, Tesla stock doubled in the $315 region.

The stock pulled back, the 50-day moving average and the $270 area acted as support, and Tesla rose to give another $315. It failed again and now after a quick three-day dip, we’ll see what Tesla really made.

The 50-day period wasn’t support, but the $267-$272 area did, just as it did about a month ago. The stock is now trying to rally again, and Tesla faces a brick wall near $290.

This wall not only includes the 10-day, 21-day, 50-day and 200-day moving averages – a rare occurrence for so many moving averages clustering together – but also has a 50% retracement from the last range.

If Tesla manages to clear that wall, it almost immediately opens the door back to the $315 region and takes back control of the bulls.

But, …

If Tesla can’t clear this area, we have to think of it as resistance until proven otherwise.

If Tesla fails to reclaim the $290-$292 area, we must turn our attention back to the current support, which is $267-$272.

Getting tested for the third time in just one month is not going to be a good look and the bulls are in danger of collapsing into the $250 area.

This was a major resistance area in the second and third quarters, so retesting this area would be a major effort for Tesla stock and the bulls.

Conclusion: Active bulls may want to avoid short-term, short-term Tesla from closing above $292.

In this scenario, $300 and $315 are the next levels of interest. If he can’t close above $292, $270 will still run.

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