High-Flyers Face Resistance

A couple of high-flying stocks, TSLA and FB, are facing resistance at the upper band of bearish “rising wedge” patterns.  In both cases, the Moneyflow has been receding as prices have pushed higher.

For TSLA, the rising wedge pattern dates back just a couple of months, building off a 40% pullback late last year.  Tesla (TSLA) is looking to breakout above resistance.  It gapped above the trendline after reporting earnings Thursday morning and has since pulled back to the line and held.  A rising wedge pattern is estimated to resolve to the downside about 66% of the time.  TSLA is flirting with bucking that trend.

2014-02-20-TSLA_CHARTS

Facebook (FB) is facing trendline resistance that dates back to late 2012.  FB has also developed a “rising wedge” pattern and is challenging the upper boundary.

2014-02-20-FB_CHARTS

 

About these ads
  1. February 25, 2014 at 11:52 am

    Wow, did TSLA break out. I was on the very wrong side of that trade. Sometimes you win, sometimes you lose… FB still playing with the resistance line.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 53 other followers

%d bloggers like this: