Technical Update - Tesla breaking key support confirming double top pattern. $200 price in sight
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Tesla closed Friday below key support. Double top pattern confirmed pointing towards lower levels. No strong support before around $200
Tesla closed Friday a few cents below the key support at 265.74 and is at the time of writing below the 0.618 retracement of the May to August uptrend.
Unless Tesla can close back above 265.74 downtrend is confirmed. A down trend that can push Tesla to test next key support at around 206.86
RSI is below 40 i.e., showing negative sentiment supporting the bearish picture.
By the close below the 265.74 support Tesla has confirmed the Double Top pattern with a potential target of around 218, indicated by the vertical arrows and horizontal dashed line.
Tesla seems to be trading in a wide falling channel - see weekly chart. Weekly RSI is negative since it hasn’t managed close above 60 after being below 40 in earlier this year.
If Tesla closes below key support at 206.86 there is support at 180.40
To reverse this bearish picture Tesla must close above 314.67.
Latest Market Insights
Outrageous Predictions 2023: The War Economy
- The constantly growing global need for energy drives the world's richest to huddle up and launch a R&D project in a size the world hasn't seen since the Manhattan Project gave the US the first atomic bomb.
French President Macron resignsThe political stalemate in France and the rise of Marie Le Pen following the 2022 elections corners President Macron, forcing him to give up on politics and resign from his position. At least for now.
Gold rockets to USD 3,000 as central banks fail on inflation mandateAs markets and central banks realise that the idea that inflation is transitory is wrong, and that prices will remain higher for longer, gold is sent through the roof, hitting a price tag of USD 3,000
EU Army forces EU down path to full unionWith continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer.
A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve assetSanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
USDJPY fixed to the USD at 200 as Japan overhauls financial systemFollowing the challenges that faced the Japanese Yen in 2022, the Bank of Japan attempts to keep the currency from sliding. Unsuccessful on the long-term, Japan will launch a reset of its entire financial system.
Tax haven ban kills private equityWith the war economy comes an increased focus on national interests and sovereign nations' ability to assert themselves. In that regard, the OECD countries turn their attention on tax havens and pull the big guns out, banning them altogether.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)