Tesla’s stock dropped by 1.09% yesterday, continuing a downward trend seen over the past few days. From its recent peak, the stock has fallen over 9%, filling the gap created between May 23 and May 27. This shift might suggest that buyers are losing momentum. On May 30, a bear flag pattern appeared, indicating that there could be more drops ahead. A bear flag shows up after a sharp price decline followed by a period of stabilization, leading to another fall. Trading volume was 81.87 million shares, which is lower than the 30-day average of 110 million, but it shows that there is still some interest at current price levels. The put/call ratio of 0.69 indicates that people are hopeful for a price increase. Support for Tesla’s stock is around $319, while resistance sits near $368. If Tesla can’t stay above the $340 range, it might soon test the $319 mark. Recent reports about Elon Musk and allegations regarding his conduct add to market uncertainty. For traders, bear flags usually suggest that prices will keep falling, and filled gaps often mean limited upside. Before entering any trades, it’s crucial to wait for signs of price reversal at support levels. Trading stocks like Tesla carries risks, so it’s wise to use stop-loss orders and do thorough research. The current sharp price pullback, combined with weak recovery attempts, suggests that sellers are still in control. Filling the gap between May 23 and May 27 has eliminated recent short-term gains, dimming the bullish excitement from that time. As the share price continues to drop, many traders are hesitating. The volume on May 30 was below average, indicating that while interest is there, buyers may not be fully committed until the stock shows clearer signals. The chart from May 30 indeed showed a bear flag. This pattern often appears when a steep decline is followed by a small bounce, typically forming a parallelogram shape that leads to further declines. It usually indicates a pause before sellers push the price down again. The current put/call ratio of 0.69 shows that there are more call options than puts, meaning many traders are still leaning toward a bullish outlook, perhaps too much. In the past, when optimism runs ahead of the actual price movement, it often results in disappointment. There is solid technical support around the $319 mark, and any price approaching this level should be approached carefully. The $368 resistance will likely hold in the short term, with the $340 range acting as a pivot point. Until the stock can reclaim and consolidate above $340, it may struggle to rise significantly. The filled gap has drained some short-term momentum, leaving few technical targets for upward movement unless new buying interest or news surfaces. The decline isn’t happening in isolation. Negative reports about Musk have added a layer of uncertainty. Traders often react quickly to negative news involving prominent figures, especially when the company is closely associated with an individual. While some are still betting on a price bounce, recent trading patterns indicate that confidence among buyers is dwindling. Like many stocks with similar chart patterns, it’s essential to confirm demand before making a move. This confirmation comes from solid price stabilization and upward movement with strong volume, not just hope or support levels. Timing is also critical, especially with short-term contracts. Prices can drop suddenly, so anyone trading near support levels needs to manage risk carefully. It’s better not to try to catch a bounce while prices are still falling. Instead, wait for a clearer trend and confirmed momentum in both volume and price action. Currently, the market environment shows strong resistance, vulnerable support, and continued reactions to external headlines that affect short-term price movements. There are still opportunities to trade this stock, but trying to predict the bottom, especially after a bear flag, is a risky strategy. When the market is uncertain and media coverage is intense, preparation outweighs guessing. Knowing your risk before entering is essential. Patience often leads to better outcomes than rushing in.

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