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May 14, 2023- Price action honing in on likely support at $164.35
- Price action broke $6.34 below known Fib level ($174.32)
Though in the midst of a 13 day uptrend, gaining a total of 9.26%, ($18.33), Friday's session suggests run might be coming to an end — grinding lower but with no clear-cut direction, Elon Musk's EV company closed the session at $167.98 after forming a distinct $167.23 – $177.38 range.
8 months ago Elon Musk's EV company reached a significant high of $309.32 but has consequently lost 44.37% since then.
Tesla made an initial break below its 21 day Simple Moving Average at $168.95, a possible indication of a forthcoming negative trend. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. Bearish sentiment was sufficient to push prices below the known Fib level of $174.32 serving as intraday support. On the other hand, note that Tesla could begin to recover as it approaches significant support, now $3.63 away from $164.35. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen Friday and forecasting Tesla to extend its recent losses.
Tesla was not the only decliner in the consumer discretionary sector; Alibaba lost 2.9% Friday and closed at $85.34. Nike lost 1.64% Friday and closed at $120.21. Amazon slides down 1.71% Friday to close at $112.18.
