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Evaluation of Tesla stock downgraded after the last trading session.

StockInvest.us, 1 month ago

Tesla

The Tesla stock price gained 0.0426% on the last trading day (Monday, 1st Aug 2022), rising from $891.45 to $891.83. , and has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 5.72% from a day low at $885.00 to a day high of $935.63. The price has risen in 8 of the last 10 days and is up by 23.58% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 7 million more shares were traded than the day before. In total, 39 million shares were bought and sold for approximately $34.72 billion.

Canaccord Genuity is very positive about TSLA and gave it a "$801.00 - $815.00" rating on Jul 21, 2022. The price target was changed from 801 to 815.Over the last 90 days, this security got 13 buy, 15 sell, and 1 hold ratings.

The stockis at the upper part of a very wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $937.39 will give a strong buy signal and a trend shift could be expected.Given the current horizontal trend, you can expect Tesla stock with a 90% probability to be traded between $606.31 and $921.92 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

Tesla

Mostly positive signals in the chart today. The Tesla stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $835.58 and $732.11. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, May 24, 2022, and so far it has risen 41.97%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

On the downside, the stock finds support just below today's level from accumulated volume at $815.12 and $728.00.There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Tesla finds support just below today's level at $815.12. If this is broken, then the next support from accumulated volume will be at $728.00 and $711.11.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $50.63 between high and low, or 5.72%. For the last week, the stock has had a daily average volatility of 5.23%.

The Tesla stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Tesla stock to perform well in the short-term period.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate.

Check full Tesla forecast and analysis here.