Take a look at Tesla (TSLA), which is an important stock to the psychology of the market:
Consider this:
- It reached its Fibonacci level and was immediately repelled;
- It managed to fall to the trendline, finding support with the trio of Fibonacci levels;
- It bounced, hit the trio of Fibs above, but a couple of weeks ago, thanks to the Morgan Stanley upgrade, garnered enough energy to leap above all three Fibs;
- However, it only lasted in that zone about a week, not even matching its prior high (before the Morgan Stanley news);
- It then fell through all the Fibs again, rapidly sinking toward its trendline and falling almost $12 on Friday alone.
The bottom line: WATCH THAT TRENDLINE! If it breaks, it will be the first failure of the entire 2023 trading year, and it could spell trouble for Tesla and the market in general.
