Technical Analysis – Tesla stock stuck in rectangle pattern ahead of earnings
April 19, 2023 2:27 pm
Tesla’s stock had experienced a massive downtrend since September before recouping some losses in the beginning of 2023. In the short term, the share price has been moving without clear direction within a rectangle pattern, awaiting the crucial earnings report later on Wednesday for directional impetus.
The momentum indicators are promoting a bearish outlook. Specifically, the MACD histogram is currently below zero and its red signal line, while the RSI is pointing down in the negative territory after failing to jump above its 50-neutral mark.
Should earnings surprise to the downside, the price could immediately face 181.93, which is the 38.2% Fibonacci retracement of the 100.99-312.87 downleg. Should that barricade fail, the bears could target 175.50 before the attention shifts to the March low of 163.40. Even lower, the 23.6% Fibo of 150.99 might provide downside protection.
On the flipside, bullish actions could propel the price towards the 50.0% Fibo of 206.93, which capped the stock’s latest advance. Surpassing that zone, the price may ascend towards the 2023 high of 216.80. Further upside moves could then cease at the 61.8% Fibo of 231.93.
In brief, Tesla’s stock has been moving sideways in the last few daily sessions ahead of its Q1 earnings announcement. Hence, we could see some volatility in the case that the numbers fall far from analysts’ projections.
Tesla’s stock had experienced a massive downtrend since September before recouping some losses in the beginning of 2023. In the short term, the share price has been moving without clear direction within a rectangle pattern, awaiting the crucial earnings report later on Wednesday for directional impetus.
The momentum indicators are promoting a bearish outlook. Specifically, the MACD histogram is currently below zero and its red signal line, while the RSI is pointing down in the negative territory after failing to jump above its 50-neutral mark.
Should earnings surprise to the downside, the price could immediately face 181.93, which is the 38.2% Fibonacci retracement of the 100.99-312.87 downleg. Should that barricade fail, the bears could target 175.50 before the attention shifts to the March low of 163.40. Even lower, the 23.6% Fibo of 150.99 might provide downside protection.
On the flipside, bullish actions could propel the price towards the 50.0% Fibo of 206.93, which capped the stock’s latest advance. Surpassing that zone, the price may ascend towards the 2023 high of 216.80. Further upside moves could then cease at the 61.8% Fibo of 231.93.
In brief, Tesla’s stock has been moving sideways in the last few daily sessions ahead of its Q1 earnings announcement. Hence, we could see some volatility in the case that the numbers fall far from analysts’ projections.
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