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Weak technical forecast for Tesla stock being downgraded to Hold/Accumulate

StockInvest.us, 10 months ago

Tesla

The Tesla stock gained 0.17% in the last trading day (Wednesday, 21st Oct 2020), rising from $421.94 to $422.64. During the day the stock fluctuated 2.78% from a day low at $421.25 to a day high of $432.95. The price has risen in 6 of the last 10 days, but is still down by -0.63% for this period. Volume fell in the last day by -2 million shares and in total, 29 million shares were bought and sold for approximately $12.28 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.

Goldman Sachs Group does not see either upside or downside right now giving TSLA "Neutral" on their last update on October 20, 2020. The price target was set to $450.00.Over the last 30 days this security got 2 buy, 8 sell and 9 hold ratings.

The stock lies in the lower part of a very wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $400.02 is broken, it will firstly indicate a slower rising rate, but may also be an early warning for a trend shift.Given the current short-term trend, the stock is expected to rise 37.41% during the next 3 months and, with a 90% probability hold a price between $549.67 and $808.56 at the end of this 3-month period.

Tesla

The Tesla stock holds a sales 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. On further gains, the stock will meet resistance from the short-term moving average at approximately $438.84. On a fall, the stock will find some support from the long-term average at approximately $420.31. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Monday August 31, 2020 , and it has fallen so far -15.19%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 months Moving Average Convergence Divergence (MACD).

Tesla finds support from accumulated volume at $418.32.

This stock have average movements during a day and with good trading volume the risk is considered as medium. During the last day, the stock moved $11.70 between high and low, or 2.78%. For the last week, the stock has had daily average volatility of 3.42%.

Tesla holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since last evaluation from a Buy Candidate to a Hold/Accumulate candidate.

Check full Tesla forecast and analysis here.