Technical Update - Tesla breaking bearish. 164 is key support Technical Update - Tesla breaking bearish. 164 is key support Technical Update - Tesla breaking bearish. 164 is key support

Technical Update - Tesla breaking bearish. 164 is key support

Equities 2 minutes to read
KCL
Kim Cramer Larsson

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.

Source: Saxo Group

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.

Source: Saxo Group
Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.