Tesla Could Be Going into Distribution
Tesla has been one of the biggest growth stories in recent history. But now it may be going into distribution.
The first pattern on today’s chart is the bearish outside candle on December 28. The reversal pattern marked a lower high compared with mid-October.
It also began a stretch with prices falling in eight of nine sessions.
The decline left TSLA at its lowest level in almost two months. (The broader S&P 500, in contrast, is near its highest level in almost two years.)
The EV maker is now under its 200-day simple moving average (SMA). That places the stock among only 27 percent of S&P 500 members under their 200-day SMAs, according to TradeStation data.
Traders may eye the October low around $194 as the next likely support.
The weekly chart above also shows a potential downtrend over the longer term.
Finally, the fundamental news has been less positive lately. Car-rental chain
HTZ Hertz Global announced plans to shed one-third of its EV fleet. TSLA was also forced to lower estimated vehicle ranges after customer complaints.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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The first pattern on today’s chart is the bearish outside candle on December 28. The reversal pattern marked a lower high compared with mid-October.
It also began a stretch with prices falling in eight of nine sessions.
The decline left TSLA at its lowest level in almost two months. (The broader S&P 500, in contrast, is near its highest level in almost two years.)
The EV maker is now under its 200-day simple moving average (SMA). That places the stock among only 27 percent of S&P 500 members under their 200-day SMAs, according to TradeStation data.
Traders may eye the October low around $194 as the next likely support.
The weekly chart above also shows a potential downtrend over the longer term.
Finally, the fundamental news has been less positive lately. Car-rental chain
HTZ Hertz Global announced plans to shed one-third of its EV fleet. TSLA was also forced to lower estimated vehicle ranges after customer complaints.TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures or cryptocurrencies); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission (“SEC”) and a futures commission merchant licensed with the Commodity Futures Trading Commission (“CFTC”). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association (“NFA”), and a number of exchanges. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services under federal and state money services business/money-transmitter and similar registrations and licenses.
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a member of NFA. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit [url = tradestation.com/DisclosureTSCompanies] TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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