Tesla Inc. (NASDAQ:TSLA) is trading at $670. Analysis shows that the stock could set a support level at $650. Since it is tough to catch a bottom, this analysis considers that Tesla is a buy for long-term investors.
The long-term prospects for Tesla remain unaffected. Demand for electric cars continues to grow. Tesla still leads the EV market with its various models. Production has been growing despite supply chain delays. These factors will support the stock in the foreseeable future, even as the market adds pressure.
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Bear markets have been exerting pressure on equities. Over the last four weeks, the stock has traded between $650 and $770. The lowest price over the period has been $620. It means that the stock has already tested the support level. The question is how much lower the stock could possibly sink.
It is not clear how much lower the stock may fall. However, there is the possibility that the stock will eventually hit $600 before rallying. Traders may therefore transact the stock with this information in mind. Long-term investors should consider long-term prospects for the stock.
This analysis shows the long-term value of the stock to be between $850 and $1100. The bear markets may keep the stock below these levels. The analysis also shows the markets presenting buying opportunities for long-term investors.
Tesla may establish support at $650
The stock is trading at an RSI of 38.78. It is trending towards the oversold region. The buying signal would be triggered at prices around $600. For traders who work with the RSI signal, the buying opportunities would come at around $600. The target selling price would then be about $770. Long-term investors focus on how the stock will perform in the extended duration.
Summary
We recommend holding Tesla at $670. Though the stock may decline to $600, the price target is at $770 for traders. Long-term investors may realize values between $850 and $1100.
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Source: https://invezz.com/news/2022/06/15/hold-tesla-at-670-with-a-price-target-of-770/