Unfortunately for shareholders of Tesla Inc (NASDAQ:TSLA), the stock reversed off resistance and may continue to trend lower. As you can see on the following chart, the $765 level has been important for TSLA.
In March it was a support level. After a downtrend, the buyers overpowered the sellers when the stock reach $765 and pushed the price higher.
But in the middle of May, the price fell below the level. Now many of the investors who bought TSLA at $765 regret doing so. A number of them will decide to sell.
However, they are reluctant to take a loss. As a result, they place their sell orders at the same price they bought the shares at. If there enough of these sell orders, resistance will form at the level like it did here at $765.
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