Courtesy of Chris Kimble.
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Tesla has had a great run higher over the past 5-years, as it has stayed within the rising channel above.
Once it broke out of its sideways channel in 2013 near the $30 level, it blasted off, moving almost 10x higher!
Over the past 2-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 5-year rising support, could it impact the NDX 100? Possible!
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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%.
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 5-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!!!
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