If you ask most people about the sell-off earlier this year, they would blame the Ukraine invasion. The funny thing is that the invasion marked the BOTTOM, almost to the millisecond. February 24th!
Take Tesla (please!) Since February 24th, it has climbed 57%. Fifty. Seven. Percent. That’s the kind of return one would hope for over a five year time span, not five weeks. But there we have it.
![](https://slopeofhope.com/wp-content/uploads/2022/03/upup-640x979.png)
All this was based, of course, on the meaningless news about a stock split. But people gobble that kind of thing up, so they piled right in. I don’t think there’s much left to this rally. Please take note of the slow-moving Bollinger Bands and where the present price is (I would also ask you to note that these same BBs nailed the bottom precisely).
![](https://slopeofhope.com/wp-content/uploads/2022/03/slopechart_TSLA-6-640x344.jpg)
Even more straightforward is the broken trendline. Today’s $80 price ascension has crammed the price bar right up against its broken trendline. That, to me, is compelling evidence of imminent exhaustion.
![](https://slopeofhope.com/wp-content/uploads/2022/03/slopechart_TSLA-1-2-640x344.jpg)
Finally, if I may say so………..here is a chart of the last time the stock split. Please note the small letter “S” on the left side of the chart. That marks the day of the split. Now, I well recognize there is a difference between a split day and an announcement that they are –considering– a stock split. But I simply offer the chart below to make clear that just because a stock splits doesn’t mean it instantly flies higher. The last time, this was a nearly perfect “buy the rumor, sell the news” kind of event.
![](https://slopeofhope.com/wp-content/uploads/2022/03/slopechart_TSLA-2-2-640x344.jpg)