The Coronavirus has shaken the market and stock price has fallen out of the ascending triangle. However, investors and analysts are largely pricing in the worst case scenario (global pandemic completely shutting down economies and throwing world into recession), which is normal human behavior. Supply/demand are just deferred, but as infection numbers plateau and decline in China, investors will start to come back into the market as the worst case scenario becomes less likely. People will then refocus on fundamentals and realize things are actually very good from corporate earnings perspective. Ebola, Sars and previous pandemics all saw infections decline after a few months and the market popped back up.
There's a decent change that the stock falls again and forms a more extreme double bottom before recovering into the triangle. We'll see how this all plays out, but good range for long-term investors to start buying ahead of Battery Day in April.
Keeping it in perspective, after this huge market correction, Tesla is still currently at ~$730/share, which is pretty amazing and shows the strength of the company / stock.
There's a decent change that the stock falls again and forms a more extreme double bottom before recovering into the triangle. We'll see how this all plays out, but good range for long-term investors to start buying ahead of Battery Day in April.
Keeping it in perspective, after this huge market correction, Tesla is still currently at ~$730/share, which is pretty amazing and shows the strength of the company / stock.
Comment:
Following my comment above on a more extreme double bottom, there's potential for this to take place at $640-650/share level, which is the 50MA on the daily chart and 100MA on the 4 hr chart. Stay tuned!