Evaluation of Tesla stock downgraded after the last trading session.StockInvest.us, 2 months ago
The Tesla stock price fell by -3.32% on the last day (Monday, 18th Sep 2023) from $274.39 to $265.28. During the last trading day the stock fluctuated 2.91% from a day low at $263.76 to a day high of $271.44. The price has fallen in 6 of the last 10 days but is still up by 8.27% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -32 million shares and in total, 100 million shares were bought and sold for approximately $26.61 billion.
On Sep 12, 2023, it was reported that Morgan Stanley gave TSLA a "Cautious" grade with a "initialise" action.
The stock lies the upper part of a very wide and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at $275.38 will firstly indicate a slower falling rate, but may be the first sign of a trend shift.Given the current short-term trend, the stock is expected to fall -6.89% during the next 3 months and, with a 90% probability hold a price between $194.51 and $256.40 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
The Tesla stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately $268.08. On a fall, the stock will find some support from the long-term average at approximately $249.22. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, September 14, 2023, and so far it has fallen -3.90%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Tesla finds support from accumulated volume at $259.46 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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 $7.68 between high and low, or 2.91%. For the last week, the stock has had daily average volatility of 3.03%.
Tesla holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.Check full Tesla forecast and analysis here.