Telsa's Stock Forms Bearish Head-and-shoulders Pattern As 200-day MA Turns Down

The negative technical signals on Tesla Motors' stock keep mounting, after the stock just suffered its first seven-session losing streak since the seven-day stretch ending Jan. 11, 2013. The stock's 200-day moving average, which many on Wall Street use as a guide to the long-term trend, has turned down for the first time since Jan. 22, 2013. And the stock's close below the trend line connecting the July 2014 and October 2014 lows that currently extends to about $219, and which chart watchers might call a "neckline," suggests a bearish head-and-shoulders reversal pattern has formed. A simple measured-move target -- subtracting the total height of the pattern (Sept. 3 high of $288 minus $219) from the neckline -- would imply a decline to about $150, or 30% below current levels.

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