Tesla.....

I was supposed to include an entry yesterday, but I was lazy. My wife's family just have a gathering the day before, I contributed a single dish that took quite some effort to prepare, plus, I was the designated driver for all the errant. In addition, I spent my time yesterday preparing a dish that involves lots of ingredients, taking out my whole afternoon.

 On the hind side, I do not really know what I want to check on, currencies? indices? I have done that the last 2 weeks.

I have decided to stop for the weekend and work on it today. But the question still remains: What shall I look into?

Ever since Elon Musk took over Twitter, the internet has daily news following on what this man is doing. Many leftists consider him as a threat while the rights praise him as the savior of free speech. I thought to myself, why not I check on the company that is his main base of conquest, Tesla. 

Surely, it should be quite robust considering that his is the only company with success in electric car and venture into space exploration, not to mention the purchase of Twitter.

Moreover, more news emerges with him acquiring more companies like GM. 

My only problem is that acquisitions normally happen before the market plunge and recession begins, and the companies that buy off other companies normally get hit very hard since their purchases are over-priced.

Let's look at Tesla then.

Fig 1. Tesla weekly chart

I am not sure about others, on first look, I can't help but to notice the head and shoulder formation on this counter. The counter has already broken through the neckline with moving averages rushing to conform with its trend decision with golden crosses. 

It has already fallen from its top of 414 to the present low of 150, which is a mere 36% of its peak. I will have to say that Tesla is not really doing that well. Elon Musk really need to stop venturing out and focus on sustaining his core business.

There are 2 formations that I can use to for measurement. Expansion for the head and shoulder measurement and the other, projection from the most recent zig zag formation.

To be frank, I am in quite a bit of disbelief when I derive the expansion number, its 100% expansion which coincidentally is the objective of the head in shoulder, actually produces a -0.78 result. No, it is not a decimal multiplying a certain number, but -0.78 is its objective. 

Is this an indication that Tesla going bust?

Meanwhile, projection of its recent development leads to support level between 137 to 205, of which the later has been breached. I suspect that it may reverse on reaching 137 to retest the neckline.

On a side note, with all the counters I have checked on so far on a negative gradient, US tech market is really not doing very well. It is alarming as we should be anticipating recession or worse depression in US.