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Tesla stock is up more than 100% so far in 2023 but there have been plenty of declines along the way.
John Thys/AFP via Getty Images
Tesla
stock is approaching some key support levels. Investors better buckle up for trading volatility.
The electric-vehicle maker’s (ticker: TSLA) stock chart looks like a mountain range, with lots of steep slopes. After a recent climb that took shares close to $280 apiece, it looks like the stock is coming down the other side of the peak.
“The immediate concern is seeing the stock potentially breaking below [a] steep uptrend line,” said CappThesis founder and market technician Frank Cappelleri. “Similar trendline breaks led to quick downside action the last three times in 2023.”
Tesla stock went from roughly $220 to $280 in a heartbeat. But now, the shares are threatening to break below $260. If they do, $240 is in play, according to Cappelleri’s charts.
The reason for recent weakness doesn’t appear to be related to the company. “The market is in a corrective phase,” said John Roque, senior managing director and head of technical strategy at 22V Research. “Tesla is not likely to be immune.”
How far the stock can fall is a key question for investors. Beyond the $240 Cappelleri flagged, “key support for Tesla is near $218,” said Fairlead Strategies analyst Will Tamplin. That is the level where a recent rally for the stock started in mid-August and another price for investors to watch.
None of the three’s comments represent a call about the prospects for Tesla’s business. Like other technical analysts, they draw lessons from what stock…
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