- Tesla shares continue to lag behind.
- TSLA shares fell 3% again on Monday.
- Stocks are testing the resistance of the moving average.
Tesla shares have simply fallen short of expectations since the April 26 earnings report. Earnings per share (EPS) beat analysts’ expectations, but demeanor and earnings did not suit investors. Essentially, Tesla made a lot of money trading bitcoin and green loans, not selling cars.
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Tesla is one of the best-known and most popular stocks that has garnered significant attention from both retail and institutional investors. Elon Musk is rarely out of the news, and Tesla has revolutionized the adoption of electric vehicle technology. However, investors are now wondering if Tesla poked the bear, so to speak, and if it could end up being a victim of its own success. All legacy automakers have announced plans to make the future all-electric. Most older car manufacturers are targeting this transition by 2030.
Tesla stock forecast
Tesla is more volatile than the stock market as a whole, meaning it has a higher beta. It experienced sharp drops last year as it grew rapidly last year.
The long-term chart clearly shows where Tesla came from, as well as a strong first phase of price consolidation and a sudden and sharp breakout pace. This is what breakouts should look like, sharp and sudden. Tesla is now back in the price range of its second consolidation. The bearish target is a return to the original consolidation area below $ 500. $ 780 is a large resistance level and the failure to break it resulted in a bearish move.
The daily chart shows us the Tesla bull problem. The 9-day moving average holds Tesla in place and is now converging into an area of strong resistance as the 9-day and 50-day moving averages converge around $ 702. It will be difficult to break. If the TSLA breaks higher here, it will be a strong bullish move with a target of $ 750, a top of the triangle and a final test of new highs.
Failure to move higher would result in Tesla stock targeting the lower end of the triangle at $ 667, while a breakout of the triangle would give the bears the ultimate target of a return to the first consolidation zone. Support along the way is $ 674 from the 100-day moving average and $ 575 from the 200-day moving average.
The Moving Average Convergence Divergence (MACD) turned into a negative signal, as did the Directional Movement Index (DMI), but with a weak signal.
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