Tesla is considered to be a volatile stock and it's showing just that when it gets the chance. Even so, it does tend to range and respect certain levels; rallying impressively but falling hard as well.
The latest decline started near the area of the all-time highs around $380-$390, peak levels that were visited 4 times during the last 2 years.
This time, the priced went as low as $231, that is a massive drop of $148 which is nothing new for this asset.
At a first glance, the strong support line and bottom part off the latest range of $250 seems to have been broken.
Taking into account that the company had their Q1 earnings report released recently so it might be worth waiting a couple of days before we get a confirmation of a real $250 break.
The asset is definitely under pressure as it reported a loss of $702 million in Q1 but we could see a strong rebound above $250 in the next couple of weeks.
Additionally, it could be noted that the bad Q1 report was in a way priced in as it was no secret that Tesla struggled with deliveries and would also report a loss.
Regardless, the spike to $231 happened and here we are now just above it.
Based on all this information, as well as the patterns of rallies/declines and general price behavior within these ranges we could be looking at a slow but steady attempt for another $100 rally which could take the price closer to $300-$320 again. That level was kind of the base for Tesla in the last 2 years and was broken only temporarily for a few weeks or so last year in April and October.
The latest decline started near the area of the all-time highs around $380-$390, peak levels that were visited 4 times during the last 2 years.
This time, the priced went as low as $231, that is a massive drop of $148 which is nothing new for this asset.
At a first glance, the strong support line and bottom part off the latest range of $250 seems to have been broken.
Taking into account that the company had their Q1 earnings report released recently so it might be worth waiting a couple of days before we get a confirmation of a real $250 break.
The asset is definitely under pressure as it reported a loss of $702 million in Q1 but we could see a strong rebound above $250 in the next couple of weeks.
Additionally, it could be noted that the bad Q1 report was in a way priced in as it was no secret that Tesla struggled with deliveries and would also report a loss.
Regardless, the spike to $231 happened and here we are now just above it.
Based on all this information, as well as the patterns of rallies/declines and general price behavior within these ranges we could be looking at a slow but steady attempt for another $100 rally which could take the price closer to $300-$320 again. That level was kind of the base for Tesla in the last 2 years and was broken only temporarily for a few weeks or so last year in April and October.