- Tesla is eyeing the $171.28 support level
- Falling prices have precipitated Tesla's approach to its lower Bollinger Band® at $169.64
In the last 3 days, Tesla has lost a total of 10.4% of its value. More of the same today: the trendy EV maker drops 2.91% in early trade and remains within touching distance of the $174.59 level.
Elon Musk's EV company has shed 34.47% over the past three months.
Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to asset volatility analysis, Tesla's lower Bollinger Band® is at $169.64, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Chart analysis indicates Tesla could begin to recover as it approaches significant support, now $3.31 away from $171.28. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates Tesla will remain range-bound for the immediate future.
Fundamental indicators – United States Crude Oil Inventories released earlier showed a marked improvement to -5.19 million from the preceding data of -12.58 million, but fell short of the -3.31 million figure forecast by a consensus of market analysts.
Tesla's stock value drop coincides with Alibaba is down 2.57% from the beginning of the session and now trades around $89.1.
Positive performances can be seen by looking at other consumer discretionary stocks as Lowe's is up 3.88% to $209.75. Home Depot is trading at $321.64 after ending yesterday's session at $317.45 (up 1.32%).
Upcoming fundamentals: projections for United States Initial Jobless Claims are set for a continuation of decline with 230,000 while previous data was 225,000; data will be released tomorrow at 13:30 UTC.