Is Tesla Running Out of Road?Tesla has been rangebound for the last two months, and some traders may think it’s running out of road.
The first pattern on today’s chart is the March high of $291.85. The EV maker peaked around the same level in late April and remains stuck there again in early May. That may suggest resistance is in place. Will traders look for a return to the recent lows under $220?
Next, the stochastic oscillator is turning down from overbought territory.
Third, the 50-day simple moving average (SMA) had a “death cross” under the 200-day SMA in mid-April. That may suggest its longer-term trend is getting more bearish.
Finally, TSLA is one of the most active underliers in the options market. (Its 2.7 million average contracts per day ranks No. 2 in the S&P 500, according to TradeStation data.) That may help traders take positions with calls and puts.
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