- Tesla could slow down as it approaches resistance at $206.03
- Although higher today, Tesla dipped below its 10 day Simple Moving Average in early trade
A 4 day downtrend is ongoing for Tesla. A possible change of direction spotted from yesterday; Tesla recovered from the previous trading session's losses and went up to $202.07 yesterday after it traded lower at $196.33.
The stock has been trending positively for about a month. The trendy EV maker is up 85.81% from the significant low of $108.1 it hit a month ago.
Despite posting gains on yesterday, Tesla slid below its 10 day Simple Moving Average at $203.22 during the last session — an early indicator that a negative trend could be emerging. Tesla is $3.96 away from testing key resistance at $206.03. Peaking above this level could inspire market bulls and open the path to further gains.
Examining the technical analysis landscape, Tesla is likely to reverse course and start pointing downward in the short term.
Fundamental indicators – United States Crude Oil Inventories beat the 2 million projections, with 7.65 million.
A look at other consumer discretionary stocks also showed bullish price action as Pinduoduo gained 3.22%, as it traded at $86.11. Home Depot added 1.02% to its value, and traded at $299.31.
While Tesla was bullish yesterday, the following consumer discretionary stocks underperformed: Starbucks went down to $103.51, losing 1.2% after it closed at $104.77 yesterday.
Upcoming fundamentals: United States Core PCE Price Index (MoM) (Jan) is expected today at 13:30 UTC.