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May 11, 2023
- Next support is currently $2.5 away at $165.34
- Tesla made an initial breakout above its 5 day Simple Moving Average at $168.15, a potential indicator of a newly emerging bullish phase.
On an 11 day uptrend, Today's session might suggest a slow down — Tesla trades at $167.84, after ending yesterday at $168.54.
Elon Musk's EV company is now trading 45.51% below the significant high of $309.32 it set around 8 months ago.
Tesla made an initial breakout above its 5 day Simple Moving Average at $168.15, a potential indicator of a newly emerging bullish phase. Tesla is approaching key support, around $2.5 away from $165.34. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. In contrast, 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.
Despite muted price action in Tesla, chart analysis indicates it is positioned for a bullish run in the short term.
Fundamental indicators – United States Producer Price Index released earlier showed a marked improvement to 0.2% from the preceding data of -0.4%, but fell short of the 0.3% figure forecast by a consensus of market analysts.
Meanwhile, mixed performances are seen in other consumer discretionary stocks as after closing the previous session (yesterday) at $101.14, Walt Disney lost $8.95 and is trading around $92.19. Alibaba is up 5.3%. Toyota is down to $141.68, losing 1.33%, after ending yesterday at $143.59.
