Tesla ,TSLA, Get Free Report Stocks haven’t had an easy time this quarter and Monday was no exception, with shares of the electric-vehicle leader down 5% at last check.
The automaker just hasn’t been able to find its groove.
Disappointing quarterly distribution results and huge earnings have created a bearish mood for the quarter. Elon Musk’s acquisition of Twitter and concerns about the economy in China, a key market for Tesla, have it looming large for investors.
Shares slid Monday on reports the company was cutting production in China.
Other Chinese EV stocks, like Nio ,nio, Get Free Report and Lee Auto ,Took, Get Free ReportHe got his bad news this morning as the Canada Pension Plan reduced its holdings in the companies.
Tesla stock recently hit a 52-week low on Nov. 22, and after a rally, shares are under pressure again. Is a New Bottom in Store? Let’s look at the chart.
trading tesla stock
Daily chart of Tesla stock.
Chart courtesy of TrendSpider.com
A few weeks ago, I mapped the $150 and $167.50 levels. As we focus on the latter – with a little help from hindsight – traders can see how important that level was.
Not only was this a key breakout level, but it is also where the 61.8% retracement comes in handy.
With today’s move lower, Tesla stock is trading below the 10-day and 21-day moving averages, as well as below all of its notable daily moving averages. If the stock breaks below $180, the chances that it will retest the $167.50 level increase greatly.
A break of the 2022 low opens the door for monthly VWAP measurements, along with the 50-month and 200-week moving averages. Beneath all these marks is the key $150 level, which was also a key breakout level.
On the upside, Tesla bulls need the stock to gain above the 10-day and 21-day moving averages.
If it can do that, last week’s high at $198.92 and $200 is in play. For what it’s worth, a 50% retracement of the current range under $202 comes into play.
In that case, a move above $202 – and thus all the levels listed above – opens the door to the $210 to $213 area.
Bottom-line? Be cautious with Tesla stock until we see lower prices or move above short-term moving averages.
Anything in between is a low risk/reward setup.
