Down nearly 11% on the week, Tesla (TSLA) shares plunged following disappointing Q1 (2023) earnings compared with Q1 a year before. Technically, at least out of the longer-term charts, the recent selloff is unlikely to have raised too many eyebrows.
From the monthly timeframe, I noted price action was testing a particularly notable support-turned-resistance at $208.59 in recent analysis, in a market trending lower since topping at $414.50 in late 2021. I also emphasised the neighbouring channel resistance taken from the high $384.29. MTD, the stock price is down an eye-watering 20.4% and on the verge of closing south of its 50-month simple moving average (SMA), fluctuating at $170.53. Needless to say, there’s lots of fresh air below the SMA until reaching support at $109.96.
As evident from the daily timeframe, much of the week’s downside emerged on Thursday. The company’s stock gapped considerably lower at the open following Wednesday’s earnings and ended the day down nearly 10%. As you can see, this reaffirmed the bearish presence I see on the monthly scale: pencilling in a fresh lower low beyond the $163.91 low (13 March) and corroborating the downtrend. However, at the same time, price movement touched the lower Bollinger Band (set to three standard deviations). Consequently, a pullback may be on the cards this week, particularly if the Relative Strength Index (RSI) crosses swords with oversold space.
From the H1 chart, the stock rebounded from support at $162.79 on Friday, aided by an oversold signal from the RSI (technicians will likely acknowledge that we also have channel support nestled beneath current support extended from the low $176.11). Overhead, resistance calls for attention at $176.16.
In light of the above analysis, I feel the stock is oversold and a pullback is perhaps on the table this week, which could see price attempt to fill the recent downside gap and draw in H1 resistance mentioned above at $176.16. Therefore, although the overall trend favours sellers, a short-term bullish scenario appears to be brewing.
From the monthly timeframe, I noted price action was testing a particularly notable support-turned-resistance at $208.59 in recent analysis, in a market trending lower since topping at $414.50 in late 2021. I also emphasised the neighbouring channel resistance taken from the high $384.29. MTD, the stock price is down an eye-watering 20.4% and on the verge of closing south of its 50-month simple moving average (SMA), fluctuating at $170.53. Needless to say, there’s lots of fresh air below the SMA until reaching support at $109.96.
As evident from the daily timeframe, much of the week’s downside emerged on Thursday. The company’s stock gapped considerably lower at the open following Wednesday’s earnings and ended the day down nearly 10%. As you can see, this reaffirmed the bearish presence I see on the monthly scale: pencilling in a fresh lower low beyond the $163.91 low (13 March) and corroborating the downtrend. However, at the same time, price movement touched the lower Bollinger Band (set to three standard deviations). Consequently, a pullback may be on the cards this week, particularly if the Relative Strength Index (RSI) crosses swords with oversold space.
From the H1 chart, the stock rebounded from support at $162.79 on Friday, aided by an oversold signal from the RSI (technicians will likely acknowledge that we also have channel support nestled beneath current support extended from the low $176.11). Overhead, resistance calls for attention at $176.16.
In light of the above analysis, I feel the stock is oversold and a pullback is perhaps on the table this week, which could see price attempt to fill the recent downside gap and draw in H1 resistance mentioned above at $176.16. Therefore, although the overall trend favours sellers, a short-term bullish scenario appears to be brewing.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.