TSLA -22 to 185, the chart looks bearish according to this article - it may hit $150 or lower in the coming months - maybe that would be a better time to buy ?
Tesla Stock Will Head Lower From Here. The Charts Don't Lie. -- Barrons.com
(Dow Jones 01/25 10:33:32)
Al Root
Tesla stock is falling after the company posted disappointing quarterly
earnings and hosted an equally disappointing earnings conference call.
Investors are likely wondering where the stock will go next. For some
guidance, they can forget fundamentals and look at stock charts.
Market technicians and traders look at chart patterns to get a sense of
where any stock can go over the short and medium term. Charts have a way of
aggregating all the opinions of market players and can be useful for any
investor -- be they a bull or bear -- looking to overcome innate biases.
The setup is grim. Tesla stock was down 8.6% in premarket trading
Thursday, below $190 a share, after the company reported fourth-quarter
earnings of 71 cents a share. Wall Street was looking for 73 cents a share.
S&P 500 and Nasdaq Composite futures were up 0.4% and 0.5%, respectively.
"Tesla's key support near $208 is going to be sliced through today," said
Fairlead Strategies founder Katie Stockton. "But we usually let gaps down
settle and watch the next few days of trading before judging the magnitude
of the breakdown."
If Tesla stock closes below $208 for two consecutive Fridays then it is
headed toward $177, she says.
But Stockton does have some heartening advice. Don't "sell into weakness,
if you own Tesla," Stockton adds. "See if it can get back into the gap for a
better exit."
A significant drop, or rise, all at once is called "gapping down," or
"gapping up" in Wall Street parlance. Stocks that gap down tend to get back
some of the initial drop. That can happen with Tesla too, but that is
trading advice from Stockton, not investing advice.
The "$200 is the key level for Tesla and as long as the stock is under
there, price action and technical indicators will be challenged and biased
lower," adds 22V Research senior managing director John Roque. He is a
little more bearish than Stockton and says Tesla stock could eventually
retest the levels near $100 seen in early 2023.
That isn't what shareholders want to hear, but the charts don't lie. Of
course, things don't have to turn out that way. Demand, interest rates, and
investors' moods are all dynamic. Still, investors should brace for Tesla
stock to drift lower in the coming weeks.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones &
Co. Barron's is published independently from Dow Jones Newswires and The
Wall Street Journal.
(END) Dow Jones Newswires
January 25, 2024 10:33 ET (15:33 GMT)
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