TSLA: Resistance Overhead

$TSLA : Tesla Motors Inc.

In looking at the daily chart for Tesla Motors Inc., the $240 area has been a formidable resistance level both in the recent run up as well as back in March after the pullback from all time highs above $260.

Today's candle may be indicative of a temporary relief in selling pressure, as bulls swept in and bought the stock at the lows just under $215 to close for the day at $219.

If the overall markets continue to pullback, it will be interesting to see if the stock can hold the $210 area, as this was the breakout level for the June run up.

The ADX line is no longer rising higher, indicating that the most recent trend in the bulls favor is over and that the stock is entering a trading range phase. -DMI is moving up, so it will be interesting to see how much bears exert themselves.