tesla inc tsla was trading almost 6 lower on monday morning after reporting firstquarter production numbers which came in just slightly above the previous quarter the downturn caused tesla to open the trading session with an inside bar pattern on the daily chart an inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend an inside bar pattern has more validity on larger time frames fourhour chart or larger the pattern has a minimum of two candlesticks and consists of a mother bar the first candlestick in the pattern followed by one or more subsequent candles the subsequent candles must be completely inside the range of the mother bar and each is called an inside bar a double or triple inside bar can be more powerful than a single inside bar after the break of an inside bar pattern traders want to watch for high volume for confirmation the pattern was recognized bullish traders will want to search for inside bar patterns on stocks that are in an uptrend some traders may take a position during the inside bar prior to the break while other aggressive traders will take a position after the break of the pattern for bearish traders finding an inside bar pattern on a stock thats in a downtrend will be key like bullish traders bears have two options of where to take a position to play the break of the pattern for bearish traders the pattern is invalidated if the stock rises above the highest range of the mother candle want direct analysis find me in the bz pro lounge click here for a free trial the tesla chart on friday tesla printed a big bullish kicker candlestick following a sevenday consolidation pattern which saw the stock trading in a tight range between about 190 and 200 although tesla was reacting bearishly to production numbers the inside bar pattern leans bullish for continuation higher because the stock was trading upwards before printing the pattern   traders and investors can watch for tesla to break up or down from friday’s mother bar later on monday or on tuesday to gauge future direction when the stock breaks from friday’s range traders can watch for higherthanaverage volume to indicate the pattern was recognized   tesla is trading in a confirmed uptrend with the most recent higher low formed on march 28 at 18543 and the most recent confirmed higher high printed at the 20066 mark on march 22 if tesla falls under friday’s lowofday bullish traders will want to see the stock reverse course above the march 28 lowofday to indicate the uptrend will remain intact   bearish traders want to see big bearish volume come in and break tesla down under the 50day simple moving average sma which could power a further move to the downside on the upside tesla is likely to find resistance at least temporarily at the 200day sma   tesla has resistance above at 21313 and 22503 and support below at 20051 and 19041 read next opec sends oil on boil elon musk builds up cybertruck expectations shiba inu springs back to life and more 5 weekend stories you may have missed