Tesla, Inc (NASDAQ:TSLA) was trading slightly lower Monday on far-below-average volume, in slight contrast to the S&P 500.

The stock market index rising but on lower-than-average volume ahead of consumer price index data, which is set to print on Wednesday.

The EV-giant will be one of the first big-tech stocks to print earnings this season, and will help to set the tone of what traders can expect as the season heats up into the end of July and early August.

Ahead of that event, Mizuho analyst Vijay Rakesh maintained a Buy rating and raised the price target from $230 to $300. Jefferies analyst Philippe Houchois maintained a Hold rating and bumped up the price target from $185 to $265. Read more here...

The recent downturn in Tesla has the stock trading in a bull flag pattern, although continued momentum lower will cause the formation to negate.

The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.

For bearish traders, the "trend is your friend" (until it's not) and the stock may continue downwards within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.

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The Tesla Chart: Tesla’s possible bull flag was formed between June 27 and Friday, with the pole printed between that date and July 3 and the flag forming since. On Monday, Tesla was dropping under the eight-day exponential moving average and if the stock closes under that area, the flag will be negated and the downtrend that developed within the flag may continue to draw Tesla lower.

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