Tesla (TSLA) – Get Free Report stock can’t find the brakes.
The stock opened 4.6% lower on Tuesday, the first session of the holiday-shortened trading week and the last trading week of 2022.
The electric-vehicle leader’s shares at last check were off 8%. Should Tesla stock close lower on the day, it will mark its seventh straight daily decline and its 10th daily decline in the past 11 trading sessions.
This time, the decline comes as the automaker plans to maintain lower production in its Shanghai plant in January.
Reports about lower Shanghai production in December previously weighed on the stock, and that remains a negative catalyst to start off the week.
The decline has investors asking just how low can Tesla stock go?
Trading Tesla Stock
Weekly chart of Tesla stock.
Chart courtesy of TrendSpider.com
I honestly expected a better stand from the bulls in the $150 area. A number of key measures were in this area, but instead we saw a deliberate breakdown in the stock price.
Tesla stock since has continued to drop and is nearing the next area of interest.
I am keeping an eye on the $100 to $110 area. In that zone we have a smaller breakout zone than $150, but a breakout zone nonetheless.
Further, it’s also where we find the 78.6% retracement and the 10-year moving average.
Now, these are not my typical measures. I give more credence to the 10-day or 10-week moving average and have more trust in the 50% and 61.8% retracements.
That’s not to say that the current measures are insignificant. It’s just that volatility tends to be higher, and thus even if those measures act as support, that effort can come alongside heightened emotions and wild price swings.
Keep in mind that Tesla’s pre-covid high is down near $65. While many other great companies are near or have tested their pre-covid highs, Tesla is still up 76% from this level even after falling more than 72% from its all-time high.
Where Tesla stock will find its low is unclear. The stock is in a near of free-fall at the moment.
Tax-loss selling should slow after Dec. 28, so perhaps that will help the stock find a bid.
In any event, once the shares do bottom, I expect some areas — like $150 to $160 — to turn into resistance.
Source: https://www.thestreet.com/investing/stocks/tesla-stock-just-how-low-can-go-check-the-chart?puc=yahoo&cm_ven=YAHOO&yptr=yahoo