Technical Analysis (1 Day time-frame):
The black support line rising indicates the use of support over the past year and a half. The market is currently in a correction and is reaching pre-bubble levels that can be used as possible support or floor to bounce off or breakthrough. The green line is a shorter-term trend line that the lower lows of TSLA seem to be respecting. A Fibonacci retracement line drawn from a low sometime in May to TSLA’s peak shows a .785 level that has been used as support before. Along with these technical observations, the MACD has curled and broken to the upside, indicating bullish buying power. The RSI has recently broken through its moving average, another bullish indicator.
Zooming in (1 Hour time-frame):
Looking at the 1hr time frame, most of the technical observations still are valid, however, one important indicator must be considered when observing this time frame. The RSI is around 36.6, meaning that TSLA is nearing reaching an oversold status. When looking at previous occurrences of TSLA’s RSI being oversold, it can usually be seen that a sharp rise in price follows, usually magnified by other indicators or technical observations working in its favor.
Conclusion:
In the coming few weeks the market is going to be very telling of the direction many large stocks will take to, especially TSLA. If TSLA can continue to hold its current support level and demonstrate strong buying power, it can be concluded that there are going to be many opportunities in the near future to buy into TSLA. However, if price action is weak and TSLA can not hold its current support level, it is likely that TSLA will continue to fall and many opportunities to short and hedge with other stocks will arise.
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