Tesla (TSLA) – Head and Shoulders Pattern AnalysisTesla, Inc.BATS:TSLATSXGanG🧠 Tesla (TSLA) – Head and Shoulders Pattern Analysis 📊 Pattern Overview The chart displays a classic **Head and Shoulders** formation on the daily timeframe, which is typically considered a **bearish reversal pattern**. It consists of: - **Left Shoulder (Épaule gauche):** A peak followed by a minor decline. - **Head (Tête):** A higher peak forming the top of the pattern. - **Right Shoulder (Épaule droite):** A lower high, mirroring the left shoulder. - **Neckline:** A dotted support line connecting the lows between the shoulders and the head. 🔍 Technical Implications - Breakdown Risk: If the price breaks below the neckline with strong volume, it may signal a **trend reversal** from bullish to bearish. - **Price Target:** The expected downside move is typically estimated by measuring the distance from the head to the neckline and projecting it downward from the breakout point. - **Volume Confirmation:** The volume spike near the right shoulder and neckline area suggests increasing selling pressure, reinforcing the bearish outlook. 📈 Current Price Action - TSLA Price:** $445.01 (+2.11%) — currently above the neckline, but approaching a critical zone. - Volume: 69.34M — relatively high, indicating active participation. - Resistance Zone: Around $445–450, aligning with previous highs and the right shoulder. - Support Zone: Near the neckline (~$426–431), which is crucial to watch for a potential breakdown. 🧭 Strategic Considerations - Bearish Scenario: A confirmed break below the neckline could trigger a sell-off toward the $400–410 range. - Bullish Scenario: If TSLA holds above the neckline and breaks above the right shoulder, it could invalidate the pattern and resume its uptrend. - Risk Management: Traders may consider stop-losses above the right shoulder and targets near the projected breakdown zone. Any information in this post are not any financial advice you are reponsible for your own decision.