A classic “descending triangle” pattern has formed on the chart of Tesla, Inc. It has bearish implications and suggests shares may trade lower.
Over the past month, buyers of Tesla stock have been complacent. They’ve held their ground and patiently waited around $1,000. This turned it into a support level.
At the same time, the sellers have become more aggressive. They’ve been willing to accept successively lower prices.
The combination of aggressive sellers and complacent buyers is bearish for a stock or any other type of market. This is why the descending triangle is a bearish pattern. There’s a chance a new downtrend forms.
By Mark Putrino
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