Follow-Up on Tesla

With the earnings sell-off for TSLA, the major topping pattern remains very much in play. We looked at chart yesterday, as a cockeyed head and shoulders formation. 

And updating it today, it looks as though the $200 area is of course of psychological important. But it also may be technically key, too. The sheer size of the pattern projects a move much lower, which no Tesla bull wants to even consider at this point. 

Even if a major breakdown does not occur, it is likely correction to remain cautious on TSLA as long as it holds below $230.