Technical Analysis – Tesla’s stock neutral in medium-term, but at risk of correction in short-term
November 23, 2018 2:26 pm
Tesla’s stock continues to trade in a relatively sideways manner, showing no clear trending structure on the daily chart. Enhancing this neutral view, the 200-day simple moving average (SMA) has flatlined, indicating the absence of a strong directional bias.
Short-term oscillators, though, suggest a pullback may be looming. The RSI is pointing lower and looks ready to challenge its neutral 50 line soon, detecting fading upside momentum. The MACD, although above zero, has crossed below its red trigger line, which is a negative signal in the short-term.
Immediate support to declines could come around 330.0 – a zone that halted two drops in early November. A downside break may open the way for 315.0, this being the peak of October 2; note that the 200-day SMA at 310.0 and the 50-day SMA at 305.0 are relatively close to this top. Even lower, buy orders may be found at the October 17 peak of 280.0.
On the flipside, a rally in the stock may stall initially near the 357.50 region, marked by the high of November 8. If the bulls break above it, the next obstacle would be the November 19 top of 366.50, before the August 7 peak of 387.0 comes into view.
Summarizing, the medium-term picture is neutral, but momentum oscillators point to a near-term pullback.
Tesla’s stock continues to trade in a relatively sideways manner, showing no clear trending structure on the daily chart. Enhancing this neutral view, the 200-day simple moving average (SMA) has flatlined, indicating the absence of a strong directional bias.
Short-term oscillators, though, suggest a pullback may be looming. The RSI is pointing lower and looks ready to challenge its neutral 50 line soon, detecting fading upside momentum. The MACD, although above zero, has crossed below its red trigger line, which is a negative signal in the short-term.
Immediate support to declines could come around 330.0 – a zone that halted two drops in early November. A downside break may open the way for 315.0, this being the peak of October 2; note that the 200-day SMA at 310.0 and the 50-day SMA at 305.0 are relatively close to this top. Even lower, buy orders may be found at the October 17 peak of 280.0.
On the flipside, a rally in the stock may stall initially near the 357.50 region, marked by the high of November 8. If the bulls break above it, the next obstacle would be the November 19 top of 366.50, before the August 7 peak of 387.0 comes into view.
Summarizing, the medium-term picture is neutral, but momentum oscillators point to a near-term pullback.
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