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April 21, 2023- Price action backs away from resistance at $168.27 despite bullish mood
- Market bulls strengthened by lower Bollinger Band® currently at $167.09
Tesla is in the midst of a 4 day downtrend. Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. Tesla posts light gains on a low-volatility day, ranging between $161.33 – $165.37 and is now at $164.19.
Elon Musk's EV company is up 50.78% from the significant low of $108.1 it hit 3 months ago.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that Tesla's lower Bollinger Band® is at $167.09, indicating that the market is oversold and fertile for new buyers. Chart analysis suggests although Tesla is appreciating today after rising as high as $165.37, price action is now slowing and consolidating around $4.08 below the $168.27 resistance level.
With market volatility ebbing, the current technical outlook indicates Tesla will remain range-bound for the immediate future.
Fundamental indicators – United States Services PMI came out at 53.7, while a consensus of analysts was expecting 51.5.
Rallies can also be seen in other consumer discretionary stocks, Amazon is up 3.36%. Home Depot is trading at $300.65 after ending yesterday's session at $298.57 (up 0.7%).
At the same time, Alibaba is down 2.18% from the beginning of the session and now trades around $88.76.
