Watch Out Below? Tesla Motors Inc Is Breaking 5-Year Support Levels
Once it broke out of its sideways channel in 2013 near the $30 level, it blasted off, moving almost ten times higher.
Over the past two years, it has traded from the top of the channel to the bottom, in a sideways pattern.
Triple support could be giving way at (1) above, which could encourage more selling pressure. If Tesla takes out five-year rising support, could it impact the NDX 100? It's certainly possible.
The rally off the 2002 lows has taken the NDX 100 index back to the same levels it hit in the dot.com highs, before it fell over 80 percent.
At the same time it was reaching its 2000 levels, it appears to have created a bearish rising wedge, with monthly momentum back at levels reached in 2000 at (1) above.
With five-year rising support giving way in Tesla and the NDX 100 index, it leaves room for sellers to come forward, which could drive tech stocks a good deal lower.
In August of last year, the NDX hit a low of 3,787, this becomes a critical support level for the index. Important that this level holds.
This was originally shared on Kimble Charting Solutions.
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