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Weaker technical forecast for Tesla as stock downgraded to Hold/Accumulate.

StockInvest.us, 4 weeks ago

Tesla

The Tesla stock price gained 3.78% on the last trading day (Thursday, 28th Oct 2021), rising from $1 037.86 to $1 077.04. , 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 2.54% from a day low at $1 054.20 to a day high of $1 081.00. The price has risen in 8 of the last 10 days and is up by 31.62% over the past 2 weeks. Volume fell on the last day by -12 million shares and in total, 26 million shares were bought and sold for approximately $28.49 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%.

The stock has broken the strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $929.69, a level that may pose a second chance to hit a runner.

Tesla

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 $975.38 and $820.08. 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 61.79%. 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 $1 037.86 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 $26.80 between high and low, or 2.54%. For the last week, the stock has had a daily average volatility of 5.72%.

The Tesla stock is extremely overbought on RSI14 (96). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Tesla holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a 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 the last evaluation from a Strong Buy to a Hold/Accumulate candidate.

Check full Tesla forecast and analysis here.