Chart of the Day - Tuesday, December 27th, 2022

Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). Tesla has fallen 14 of the past 16 trading days, and it's lost more than 40% in that short time. It's still up more than 350% from its Covid low, however, it's down more than 73% from its peak just over a year ago. The most recent leg lower began in early November when it broke the neckline of a long-term head & shoulders top. With RSI reaching its most oversold reading ever today, many are looking to buy the dip on this former leader. However, the long-term trend remains lower, and catching a falling knife can be a disaster. It would have to rally more than 70% from here just to retest the neckline around $180. Look for new leaders rather than fixating on the former leaders.