Tesla stock downgraded to Sell Candidate

The Tesla stock price gained 3.91% on the last trading day (Friday, 4th Oct 2024), rising from $240.66 to $250.08. During the last trading day the stock fluctuated 2.61% from a day low at $244.58 to a day high of $250.96. The price has risen in 6 of the last 10 days and is up by 4.97% 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, 6 million more shares were traded than the day before. In total, 86 million shares were bought and sold for approximately $21.54 billion.

On Oct 03, 2024, it was reported that HSBC gave TSLA a "Reduce" grade with a "hold" action.

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 $261.82 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 $195.91 and $264.84 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 stock seldom manage to go directly from the bottom of a trend up to the top. Stock turning up in the middle of a horizontal trend are therefore considered to be potential runners.

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 $253.44. On a fall, the stock will find some support from the long-term average at approximately $230.39. 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). Volume is rising along with the price. This is considered to be a good technical signal. 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 Monday, September 30, 2024, and so far it has fallen -4.41%. Further fall is indicated until a new bottom pivot has been found.

Tesla finds support from accumulated volume at $248.23 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 $6.38 between high and low, or 2.61%. For the last week, the stock has had daily average volatility of 4.28%.

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 Hold/Accumulate to a Sell candidate.