Technical Analyst, Saxo Bank
Summary: Tesla has broken bearish out of Triangle pattern, testing key support at around 164. A close below 164 will confirm bearish trend that could fuel further sell off lower. Back down to 100 in coming months? Or can Tesla close the gap?
Tesla has gapped lower this at the open after disappointing Earnings release last night. The opening price is a few Dollars above key support at around 164.00.
The lower open also means Tesla has broken bearish out of its short-term Symmetrical Triangle pattern it tested during trading hours yesterday.
If Tesla closes below the rising trendline in the triangle it is a bearish signal.
At the time of writing RSI is below 40 threshold meaning it is showing negative sentiment. IF RSI closes below 40 down trend has been confirmed that would be emphasized if Tesla share price closes below 164.
If Tesla closes below 159.73 it has also clos below the Cloud Span which strongly indicates lower Tesla prices ahead.
For Tesla to demolish this bearish picture at close of the gap the share price created at the opening needs to be closed. A close back above the rising trendline in the triangle is likely to reverse the bearish scenario.
Medium-term (on weekly chart) Tesla failed to close above resistance at around 208.31 thereby failing to confirm an uptrend on medium-term time horizon.
If Tesla closes a week below 163.91 the bearish trend has resumes and Tesla could drop to January lows around 100 possibly lower.
To demolish this quite likely bearish scenario and confirm a medium-term uptrend a close above 208.31 is needed.
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As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
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