TSLA – Short Setup Following Technical Rejection at Resistance (Tesla (TSLA) is currently forming a potential bearish reversal after a technical rejection at a key resistance zone around $337. This area aligns with a significant supply zone on the daily chart and the 0.618 Fibonacci retracement of the previous downward swing (from $362 to $278).
On the daily chart (1D), price action shows a clear rejection of the resistance area, accompanied by increasing bearish volume, suggesting that the recent corrective upswing may be exhausted within the broader downtrend.
The 1-hour chart (1H) reinforces the bearish view:
A lower high has formed near the 0.618 retracement level (~$330).
Price has broken below minor support at $316, indicating loss of short-term bullish momentum.
Volume analysis: The rally into resistance was on declining volume, while the sell-off from $330 came with a volume spike, signaling stronger seller engagement.
Strategic Setup:
Entry: Breakdown and retest of the $316 level on the daily or hourly timeframe
Stop-Loss: Above local resistance at ~$337
Target: $278 support zone (previous swing low and demand area) 50% profit take
and
$256 next support zone (previous swing low and demand area) 50% profit take
Additional Notes:
Price may react temporarily near the $310 level (0.382 Fibonacci retracement).
Structure and volume support a well-defined short setup with clear invalidation.
