TSLA has nicely formed a top formation (shoulder/head/shoulder) and successfully confirmed the validtity of the formation by the short rebound to the neckline (lower yellow channel line).

With the projection given, the initial downside target is ~USD 155.00. Despite the fact that this formation is very powerful, momentum is quite flustering and suggests of a short-term trading range between 125 and 185.

As soon as TSLA makes a new price low (< USD 185) confirmed by a new low in momentum, further downside to at least USD 155.00 can be expected.

For now, we suggest to stay at the sideline and watch the price action closely. Traders with a high risk appetite, could go short at ~USD 207.30 (gap close) with target limit at USD 154.00 and a stop at 225.70 (USD 18.70 risk vs. USD 53.30 potential profit – ratio 2.85).