TSLA Keep Falling Ahead of the Robotaxi Event
Tesla (TSLA) has been experiencing a notable drop, currently trading at $233.72, down 3.04%. A look at technical indicators across multiple time frames reveals persistent selling pressure:
TSLA Indicators:
2-Hour Indicators:
Relative Strength Index (RSI) is at 29.50, approaching oversold levels, indicating potential exhaustion in the selling pressure but not yet confirming a reversal.
MACD remains negative at -2.55, signaling continued downward momentum.
Exponential and Simple Moving Averages across multiple periods (10, 20, 30) are all showing a "Sell" signal, highlighting a bearish trend.
Momentum (10) is at -7.86, also pointing to weakening price action.
30-Minute Indicators:
RSI at 24.29 is deep in oversold territory, suggesting the possibility of a short-term rebound or consolidation.
The MACD is negative at -1.32, reinforcing bearish momentum in the short term.
Both the Exponential and Simple Moving Averages (10, 20, 30) reflect consistent sell signals.
Conclusion:
Tesla's current price action is under significant downward pressure, with multiple indicators pointing to further declines. However, with the RSI nearing oversold levels on both short and medium-term time frames and the highly anticipated Robotaxi event scheduled for later today, increased volatility is almost guaranteed. This event could serve as a potential catalyst, either stabilizing the stock if news is received positively or leading to further declines if market expectations aren't met. Caution is advised as the stock navigates this critical juncture.
TSLA Indicators:2-Hour Indicators:
Relative Strength Index (RSI) is at 29.50, approaching oversold levels, indicating potential exhaustion in the selling pressure but not yet confirming a reversal.
MACD remains negative at -2.55, signaling continued downward momentum.
Exponential and Simple Moving Averages across multiple periods (10, 20, 30) are all showing a "Sell" signal, highlighting a bearish trend.
Momentum (10) is at -7.86, also pointing to weakening price action.
30-Minute Indicators:
RSI at 24.29 is deep in oversold territory, suggesting the possibility of a short-term rebound or consolidation.
The MACD is negative at -1.32, reinforcing bearish momentum in the short term.
Both the Exponential and Simple Moving Averages (10, 20, 30) reflect consistent sell signals.
Conclusion:
Tesla's current price action is under significant downward pressure, with multiple indicators pointing to further declines. However, with the RSI nearing oversold levels on both short and medium-term time frames and the highly anticipated Robotaxi event scheduled for later today, increased volatility is almost guaranteed. This event could serve as a potential catalyst, either stabilizing the stock if news is received positively or leading to further declines if market expectations aren't met. Caution is advised as the stock navigates this critical juncture.
Note
Tesla fell 5.9% in premarket trading after unveiling a new "cybercab" without a steering wheel or pedals, priced under $30,000, and a "robovan" for up to 20 people. While CEO Elon Musk discussed launching limited robotaxi service by 2025, competitors like Uber and Lyft saw gains of 6.3% and 3.3%, respectively. This is not a good sign for Tesla, especially as its competitors benefit from the announcement.
Tesla looks even weaker today compared to yesterday when this post was published, and significantly weaker than last week when I first advised caution. Follow me and stay tuned for an upcoming post analyzing the medium-term outlook for the electric vehicle giant.
Note
I'm ready to shift my view here, wrapping up my neutral recommendation. That neutral stance was spot on, as it helped avoid significant losses. Now, I'm turning bullish on TSLA. A detailed outlook is coming later today—stay tuned and follow for updates!
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