| 
May 12, 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), The prevailing bullish trend is beginning to fade following today's downbeat session. Despite the risk-off mood, Tesla was range-bound between $167.23 to $177.38 and settled at $167.98.
Elon Musk's EV company reached a significant high of $309.32 around 8 months ago but has 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. Price action pushed below a known Fibonacci support level at $174.32 by around $6.34 with prices hammering out a $167.23 – $177.38 range by session close. Despite this, 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.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts Tesla to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the Elon Musk's EV company is expected to attract significant bearish sentiment in the coming days.
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.
Tesla was not the only decliner in the consumer discretionary sector; Alibaba falls 2.9% today to close at $87.89. Nike goes down 1.64% today to close at $122.22. Amazon went down 1.71%, closed at $112.18.
