Tesla is still strongly in the red, downside persists. A pullback towards the trendline would create an opportunity for a long...

Tesla is trading at around $226.15 a share in pre-market trading. We can see it is pretty much repeating the very similar move that happened between February and April, with a retracement towards the supportive trend followed by a bounce much higher. There is no certainty that this will happen again, but that is what the technical bias suggests. If the price is to go higher, it is also not guaranteed that it will ever reach the trendline as this can only be speculation on history. Support is now $223.03, which is yesterday’s low point. A break below may see a move lower towards $218-220. It is too early to determine any resistance levels as Tesla is a very volatile stock and the short-term bias remains very bearish. The longer-term bias remains bullish with an assumption of a pullback towards the trendline and then a bounce higher. Based on the technical indicators, the outlook is still sour with the MACD strongly negative and the climbing out of oversold territory as it now reads 34.