TSLA: Double top risk to 360s-350s

Tesla (TSLA) is a case of "bad news" versus "good news"...

The bad news: TSLA has broken down from a double top off the 470-474 peaks from early November and early October to suggest deeper risk into the 360s to 350s. Holding near or below resistances from 411-412 (double top breakdown zone) and 424-427 (November 13 downside gap) would keep the immediate bias bearish.

The good news: Even if TSLA continued to trend lower from its double top, holding the 360s-350s would keep the big breakout from a February 2025 into September 2025 bottoming pattern in place. This basing pattern supports upside beyond the double top peaks at 470-474 and the December 2024 peak at 488.54 toward the pattern count at 518.

Conclusion: Downside from the double top could set up a buying opportunity near 360s-350s head of upside potential back to 470-474 and beyond toward 488 and 518. In addition, recent weakness could potentially create an even bigger bullish cup and handle formation with even more upside potential for TSLA.

Chart 1: Tesla (TSLA): Daily chart