Tesla breaking 5-year support, ripple into Tech stocks?

teslabreaks5yearsupportfeb4

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Tesla has had a great run higher over the past 5-years, as it has stayed within the rising channel above.

Once it broke out of its sideways channel in 2013 near the $30 level, it blasted off, moving almost 10x higher!

Over the past 2-years, it has traded from the top of the channel to the bottom, in a sideways pattern.

Triple support could be giving way at (1) above, which could encourage more selling pressure. If Tesla takes out 5-year rising support, could it impact the NDX 100? Possible!

ndx 100 double top wedge breakdown feb 4

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The rally off the 2002 lows has taken the NDX 100 index back to the same levels it hit in the dot.com highs, before it fell over 80%.

At the same time it was reaching its 2000 levels, it appears to have created a bearish rising wedge, with monthly momentum back at levels reached in 2000 at (1) above.

With 5-year rising support giving way in Tesla and the NDX 100 index, it leaves room for sellers to come forward, which could drive tech stocks a good deal lower!

In August of last year, the NDX hit a low of 3,787, this becomes a critical support level for the index. Important that this level holds!!!

Gold/Silver attempting to break 3-year falling resistance

It’s been a rough 3-years for the metals space.

“THE” worst 3-years in history for Gold and the 3rd worst 3-year performance in history, for Silver (see table below). The Power of the Pattern shared in 2011, that metals should be down for years to come. (See post here)  

Is the trend about to turn for metals? Below we discuss what we are looking at, per breakouts in Gold & Silver.

metals 3 year returns jan 25

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Below looks at the current price pattern in Gold

gold breakout attempt feb 3

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Let’s be clear about this; The trend in Gold and Silver is down and if support would break at (1), the current trend continues.

This Power of the Pattern situation has my attention; The large decline since the 2011 highs, took Gold down to test triple support of late, at the bottom of this bullish falling wedge.  It has paid to “Sell or Short Gold” at falling resistance for the past 3-years and resistance is being tested again, at (1) above.

Will it be different this time???

Gold is not alone in testing support at this time. Below is an update on Silver.

silverresistance test feb 3

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Gold and Silver conditions; Both are testing several support lines, at long-term Fibonacci retracement levels, with momentum oversold, at the apex of bullish falling wedge patterns.

Something has to give friends and when it does, it has the potential to be BIG!!!

I humbly feel the opportunities in the space, are huge, in both directions. Movement is your friend in either direction and it appears, and the stage is set for some BIG movement.

If the metals space is of interest to you, I would be honored if you were a metals member.  

Our weekly metals reports is just $29 per month (sign up here) and we pass along a 20% discount for annual membership (sign up here) 

Transports and Russell caught in between rock and hard spot!

transportsrussell rock and hard place feb 1

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We all know by now the year got off to a rough start in stock markets around the world.

Transports and Russell 2000 are the leaders to the downside over the past 90-days. The declines of late took both of them down to 5-year rising channels, where they hit rising support two weeks and small rallies have taken place, after hitting support.

Now both of these weak links, are facing falling resistance at (1) above.

I humbly feel where we are a month from now could be a big deal, as these two find themselves caught between a rock and a hard spot (support and resistance).

If markets break above resistance, February could look the polar opposite of January.

If 5-year support gives way, February could look very much like what January did.

Keep an eye on these downside leaders, they should send important messages for the month of February and beyond!