Shares of Tesla Inc (TSLA) have formed a bearish stock chart signal. The signal is a topping tail candle on the weekly chart and is a nasty sell signal. Tesla Inc has surged from $250 to almost $550 in less than three months. This meteoric rise has been impressive but looks to be over in the near-term. A classic retrace off this topping tail should bring the stock back to a Fibonacci retrace of 38.2% at $405.00. The bearish stock chart signal is more powerful on the weekly chart than if it formed on the daily chart. While tough to find shares to short, puts are a solid option. I expect the target price to be reached within three months.
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