TSLA: Path Of Least Resistance Is Lower

TSLA investors did not react positively to Musk's underwhelming Investor Day on Wednesday.

We discussed the vulnerable technical setup yesterday morning, identifying 199-200 as the initial technical warning level that would leave TSLA vulnerable to downside continuation toward a test of 4-week support lodged from 191.60 down to 188.40, which if violated and sustained, will morph the near term pattern into a Distribution Top formation.

Fast-forward to this AM's pre-market, we see that in after-market action yesterday TSLA nosedived below 199-200. The selling pressure has continued into this morning's trading, to a corrective low at 185.82-- beneath my 4-week support zone that now serves as resistance from 188.40 to 191.60. As long as any forthcoming recovery strength is capped in or below the resistance zone, TSLA's technical setup will remain on a path of least resistance to the downside to my two lower optimal target zones of 170-175, and if violated, then to 158-162... Last is 186.75