What's Up With Tesla's Stock After Elon Musk Named Time Person Of The Year?

Tesla Inc. TSLA shares were trading lower Monday and near support in a pattern.

Tesla CEO Elon Musk was named Monday as Time Magazine’s Person Of The Year. The award is given to those who have the most influence throughout the year.

Tesla was down 6.24% at $953.54 Monday afternoon. 

BZ Chart Of The Day: Bearish Pattern In Tesla's Stock

Tesla Daily Chart Analysis

• Shares broke out of a pennant pattern and continued to push higher eventually moving in an almost parabolic direction. Shares now look to be in a period of consolidation forming into another pattern more recently. Shares now look to be consolidating in a falling wedge pattern.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the stock is trading in a period of consolidation. The 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) has been fading lower and now sits at 40 on the indicator. This shows that more sellers have been moving into the market in the last month and shows more sellers than buyers now dominate the stock.

What’s Next For Tesla?

After Tesla saw its breakout from the pennant pattern, it made a large run upward. After moving straight up for a couple weeks, the stock looks to be seeing a cool down period.

Bulls are looking to see the stock consolidate for a time and then go on to break above pattern resistance. Bears are looking to see the stock fall below the pattern support and head back toward the trendline from the pennant pattern.

Photo courtesy of Tesla.