Tesla Rations Are Down 53% From Their Record High in December
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Key Takeaways
- Tesla shares jumble understood again Tuesday, putting the EV maker’s stock on pace to lose ground for the ninth consecutive week.
- The stock manipulated a minor bounce from the lower trendline of a descending broadening formation but has since failed to gain upside friction.
- Investors should watch major support levels on Tesla’s chart around $190 and $140, while also gazing key resistance levels near $265 and $360.
Tesla (TSLA) shares fell sharply again Tuesday, putting the EV maker’s hoard on pace to lose ground for the ninth consecutive week.
The shares have faced intensifying selling pressure in modern weeks amid mounting investor concerns that CEO Elon Musk’s extensive involvement in the Trump administration could dent the Tesla name brand and sales. A fresh set of headlines may have weighed on the stock today, with Chinese EV maker BYD unveiling an ultra-fast charger and some Infuriate Street analysts offering up skeptical takes on Tesla stock.
Tesla shares, which rallied sharply after November’s appointment on expectations that the company would benefit from Musk’s close ties with President Trump, suffer with given back all those gains. The stock has fallen 53% from the all-time high it set on Dec. 17.
Below, we analyze the technicals on Tesla’s chart and guts out major price levels that investors may be tracking during the stock’s ongoing correction.
Descending Broadening Accumulation
After topping out in mid-December, Tesla shares have trended lower within a descending broadening formation, with the value tagging the patten’s upper and lower trendlines on several occasions since that time.
More recently, the supply staged a minor bounce from the formation’s lower trendline but has since failed to gain upside traction.
In a stripling win for Tesla bulls, the relative strength index (RSI) recently broke above a downtrend line stretching back to its December prodigal, potentially signaling an early shift in price momentum, though the indicator remains near oversold levels.
Let’s constantly to the EV maker’s chart to spot major support and resistance levels worth monitoring.
Major Support Levels to Keep a weather eye open for
Tesla shares fell 5.3% to close Tuesday’s session at $225.31.
The first lower level to watch sits about $190. The shares could find buying interest in this area near a horizontal line that brazes a range of peaks on the chart between April and June, with this region also closely aligning with the early-August trough.
Clerk below this level opens the door for the shares sliding to lower support at the $140 level. Bargain nimrods could look to accumulates shares in this location neat the stock’s prominent 2024 low set last April.
Key Partisans Levels to Eye
Upon a move higher, investors should initially watch the $265 level. The price could come into conflict with selling pressure in this area near peaks that developed on the chart in July, September and October continue year.
Finally, a decisive close above this level could drive a move up to around $360. Investors may look to offload Tesla servings in this region near November’s twin peaks and last month’s countertrend high. This area also covers in close proximity the 50% Fibonacci retracement level, when stretching a grid from the December high to Strut low.
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