- Tesla breaks 47 cents below established support around $180.66
- Price action is currently stuck around the active Fibonacci support level of $177.59
Having fallen $12.8 in 5 days, Today's session continued the recent downtrend: in today's bearish session, the trendy electric cars company shed around 1.63% in quick fashion, found support around the $176.55 level and finally closed at $180.19. In contrast, the day's events followed yesterday's session in which the stock closed at $183.17.
The trendy electric cars company is now trading 39.75% below its 3-month high of $399.93.
Tesla could begin to recover as it approaches significant support, now 47 cents away from $180.66. Dipping below could be an indication that further losses are ahead. 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. Tesla formed a session range of $176.55 to $185.16 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $177.59.
In the short term, Tesla is expected to maintain its recent downtrend and continue spiralling lower.
Fundamental indicators – United States Existing Home Sales (Oct) came out at 4.43 million, while a consensus of analysts was expecting 4.38 million.
Tesla was not the only decliner in the consumer discretionary sector; Alibaba lost 4.47% today and closed at $80.49.
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Starbucks traded at $97.95 after closing today's trading day at $96.97 (up 1%). Lowe's was up 0.79%.