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Tesla (TSLA) is slumping badly this morning. The stock is working on its fifth straight decline as it begins to drop further below its 200-day moving average. This damaging streak began the day after Tesla failed to build any momentum during an Aug. 23 breakout. Since that move failed, Tesla bulls have shown little interest.

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On Friday, Tesla closed at new August lows. This key level, just below $221.50, held three weekly lows beginning in late July. Tesla appeared to be building a very solid base just above its 50- and 200-day moving averages during this time. As this level is convincingly taken out this week, a huge supply zone has been left in place. Up until yesterday, Tesla had spent the previous six weeks above the 200-day. Now overhead pressure is building and will likely increase in the near term.

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In the coming weeks, Tesla investors should expect further downside. There is little in the way of support before the stock reaches the $190 area. Just below this level is a major support zone. It is marked by the June/Brexit low of $187.90 near the upper band. Just below are three monthly lows from 2015, one being the low for last year set in March at $181.40. Also in the zone is an upward-sloping 40-week moving average near $185.

Patient Tesla bulls should consider the stock a very low-risk buy once a base is built in this area. Coupled with a return to oversold territory, as measured by the moving average convergence/divergence indicator, a powerful rebound could develop. Until then, Tesla may prove to be a very frustrating long.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.