The trade we have on watch today is a couple of old favorites, both the stock and the setup the stock is showing us.
Tesla (TSLA) has formed a negative momentum divergence with its RSI (Relative Strength Index), which commonly leads to lower prices. There is a key support level that is well-defined as you can see on the chart. If the stock continues to lose momentum and this support level is broken with price holding below this level, traders may want to get bearish.
Be sure to tune in to the video below to get all the details on this strategy and setup!
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