Tesla slumps; Featured Charts Major Support Nearby
More than 50% off this year, Tesla (TSLA) – Get a free report stocks finally succumb in 2022 bear market.
What’s interesting, however, is that the electric vehicle leader’s stock hasn’t broken along with the rest of the market — it has largely done so on its own.
Just a few months ago, the FAANG team, Microsoft (MSFT) – Get a free report and almost every other stock is under huge selling pressure. But the apple (AAPL) – Get a free report and Tesla is holding on to the lead in relative strength from megacap technology.
No more.
While Apple is still holding to some extent, Tesla stock continue to carve out new 52-week low.
CEO Elon Musk takes over as CEO of Twitter in conjunction with Tesla The stock market’s disappointing reaction For both third-quarter earnings and delivery numbers, the stock lacks bullish momentum.
When Should You Buy Tesla Stock?
Tesla stock has been on a weekly rise in mid-October, but apart from that, it has fallen eight of the past 10 weeks.
Last week, it let investors trade for the week, meaning its weekly trading range was completely within last week’s range. But with Monday’s 6.5% drop to a 52-week low, we have a inside and–down weekly rotation.
Today’s decline has me focusing on the downside.
The first area of interest is $167.50. We have two notable weekly highs near this level before Tesla stock finally explodes in November 2020.
But for Tesla to break above $167.5, it must first close above $150, which is a very important daily breakout area. So that’s the range I’m looking at: $150 to $167.50.
In between the two levels are the 200-week and 50-month moving averages and the monthly VWAP measure. Tesla shares Candlestick find some support somewhere in this range.
More active traders can buy near the $167.50 area and the 200-week moving average. moving averagewhile the more conservative bulls can look for an entry point near $150.
On the other hand, I expect resistance in the $200 to $205 zone and from the 10-week moving average falling. For now, though, I’m very focused on seeing how Tesla stock handles the $150 to $165 region.
If that is support, the long-term bulls as well as the traders can find attractive risk-reward opportunities in this area. If not, we have a clear line on when to bail.