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April 20, 2023
- Price action honing in on likely support at $174.73
- Lower Bollinger Band® at around $176.14
Tesla's bearish run has lasted 3 days so far (-$2.73). Yesterday's session continued the recent downtrend: in yesterday's bearish session, the trendy EV maker shed around 2.02% in quick fashion, found support around the $177.65 level and finally closed at $180.59. In contrast, the day's events followed Tuesday's session in which the stock closed at $184.31.
Tesla hit a significant low of $108.1 around 3 months ago, but has since recovered 70.5%.
Trend and momentum analysis indicates 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 $176.14, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. A study of Tesla's chart reveals various key levels to watch: Tesla could begin to recover as it approaches significant support, now $5.86 away from $174.73. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates Tesla will remain range-bound for the immediate future.
Fundamental indicators – United States Crude Oil Inventories fell short of the -1 million projections, with new data of -4.58 million.
Tesla was not the only decliner in the consumer discretionary sector; Walt Disney lost 2.16% yesterday and closed at $98.75. Toyota closed at $135.26 (down 1.3%).
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Amazon traded at $104.3 after closing yesterday's trading day at $102.3 (up 1.96%).
Upcoming fundamentals: United States Philadelphia Fed Manufacturing Index (Apr) will be released today at 12:30 UTC.
