Tesla stock downgraded to Buy Candidate

The Tesla stock price gained 1.32% on the last trading day (Thursday, 4th Nov 2021), rising from $1 213.86 to $1 229.91. , and has now gained 3 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 2.18% from a day low at $1 217.00 to a day high of $1 243.49. The price has risen in 8 of the last 10 days and is up by 37.57% over the past 2 weeks. Volume fell on the last day by -9 million shares and in total, 25 million shares were bought and sold for approximately $31.00 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

On Oct 27, 2021 "Piper Sandler" gave "$1,200.00 - $1,300.00" rating for TSLA. The price target was set to $1,037.86+1.9%.

Given the current short-term trend, the stock is expected to rise 45.88% during the next 3 months and, with a 90% probability hold a price between $1 455.37 and $1 794.19 at the end of this 3-month period.

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 $1 150.47 and $882.98. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, August 17, 2021, and so far it has risen 84.75%. 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 fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

Tesla finds support from accumulated volume at $1 208.59 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 very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $26.49 between high and low, or 2.18%. For the last week, the stock has had a daily average volatility of 5.03%.

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, along with a general good trend, 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.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.