Tesla experienced a decline of 1.09% yesterday, part of a larger drop over the past few days. From its recent peak, Tesla’s stock has fallen more than 9%, filling the gap between 23 and 27 May. This indicates a possible shift in momentum away from the bulls.

On 30 May, a bear flag pattern was observed, hinting at further downside potential. A bear flag occurs after a sharp decline, followed by a consolidation phase, and then another drop. Trading volume was at 81.87 million shares, below the 30-day average of 110 million, yet showing interest in current price levels. The put/call ratio is at 0.69, suggesting optimism for an upward move.

Support for Tesla’s stock is around $319, with resistance near $368. If Tesla does not regain and hold above the $340 range, the $319 level may be tested soon. Recent news regarding Elon Musk and substance allegations contribute to market uncertainty.

For traders, bear flags often imply continued downturns rather than rebounds, while filled gaps suggest limited upside. It’s crucial to wait for signs of reversal at support zones before entering trades. Trading stocks like Tesla involves risks, so using stop-losses and careful research is advised.

The passage points to a sharp pullback in price paired with weak attempts to recover, which often signals that sellers remain in control. The completion of the gap between 23 and 27 May erased recent short-term gains, effectively wiping out bullish enthusiasm from that period. As the share price slides, many are stepping back, given that volume on 30 May fell below average, even while prices remained active. That tells us that interest is present, but not committed — buyers might be hesitant to chase prices higher until there’s something more decisive from the stock itself.

We see that the chart on 30 May formed a bear flag. This type of pattern arises when a steep fall is met with a shallow bounce, often appearing like a parallelogram tilted upwards, only to give way to further declines. It tends to reflect a pause before sellers regain control and push the stock down once more. The fact that the put/call ratio sits at 0.69 shows more calls than puts, which means the broader crowd is still leaning bullish, perhaps too much so. Historically, when optimism stays ahead of the price action, it often results in further disappointment.

There is now clear technical support around the $319 area. Price approaching that level must be met with caution. The resistance near $368 will likely act as a lid in the short run, with the $340 bracket turning into something of a pivot. Until there’s a clean reclaim and consolidation above that $340 line, the stock may struggle to lift convincingly. The gap recently filled has stolen some of the short-term energy, leaving few technical targets to the upside unless new information or genuine buying pressure emerges.

The decline is not occurring in a vacuum. News concerning Musk — particularly the reports tied to personal conduct — has added an extra layer of doubt. Traders tend to react swiftly when a prominent figure is the subject of negative headlines, especially when the brand is so closely tied to personality. While some participants continue to bet on a bounce, the volume patterns and recent candlestick shapes point to fading confidence from recent buyers.

As with many stocks exhibiting chart structures like this, we should be looking for confirmation of demand before stepping in. That doesn’t come from hope or support levels alone — it comes from the clean evidence that price can stabilise, hold, and advance with firm volume. Timing matters too, particularly with contracts that expire quickly.

Price can break sharply without notice, so anyone entering trades near support zones must use defined risk. In our view, it’s not about trying to catch a bounce mid-fall, but waiting for price to flatten out and begin to turn, with momentum showing up in volume and price action. We’ve entered a bracketed environment — resistance is strong, support is vulnerable, and reactions to outside headlines continue to shape short-term price behaviour.

There are still ways to trade this stock, but blind attempts to call bottoms, particularly after a bear flag, are low-percentage tactics. When markets are uncertain and media noise is high, probability lies in preparation over prediction. Risk should be known at entry. Patience rewards more often than speed.