This is a 5 year monthly candlestick chart for Tesaro (TSRO). The chart shows TSRO’s share price is right in the middle of the support area from the 3 White Soldiers candlestick pattern. TSRO’s (TSRO) pullback should find support no lower than the $100 price level, which is the bottom of the support area from the 3 White Soldiers candlestick pattern.

The one thing that doesn’t look good on the below chart though is a MACD Histogram that is just starting to show selling momentum as TSRO’s share price reaches a potential reversal area. That does not give me a lot of confidence for the $106 area to act as a final support and rebound area.

Analyzing Tesaro’s (TSRO) Pullback Using the Red Fibonacci Extension Tool

The probability of a re-test of the $100 price level looks increasingly probable. TSRO’s share price has already flirted with the $106’s so this isn’t much of a stretch of a call.

If you are a TSRO shareholder, the $100 price level is like a line in the sand. Any failure of the $100 to act as a final support and reversal area indicates a pullback to the $80 price level is underway.

Any rebound from the red 100% Target Line towards the $145 – $160 price range may be a decent opportunity to trim a few shares. Especially if TSRO’s share price starts to see a lot of selling resistance around the $145 price level. You could look to repurchase those sold shares back around $125 price level and even some shares below that price.

But before selling any shares during a rebound, it is always best to re-assess the charts and see if there is potential for additional upside. That can help determine your trading strategy for the stock going forward.

Right now though, the focus should be on the MACD Histogram that is just starting to show selling momentum. Monitor that closely if you are long shares still.