TESLA Stock - Is This Concerning For TSLA?

Summary

In this Tesla stock update, the presenter dives into recent market movements, including a concerning 5.5% drop in Tesla’s stock price, largely attributed to tensions between Elon Musk and Donald Trump. The presenter analyzes key technical indicators, warning of potential bearish trends and a breakdown of crucial support levels. However, with delivery numbers coming out soon, the stock could experience volatility. The video highlights significant levels to watch, especially the $270 mark as a major red flag. The presenter urges caution, emphasizing the importance of observing how the stock reacts to upcoming catalysts and technical levels.

Takeaways

• 😀 Tesla stock closed the day down 5.5%, with a significant decline influenced by a confrontation between Elon Musk and Donald Trump.
• 😀 The stock gapped down below the $307 level, a key support zone, which turned into resistance as the day progressed.
• 😀 There is uncertainty about the stock's future movement due to a significant upcoming catalyst (delivery numbers) which could impact the stock's direction.
• 😀 The current chart setup suggests a bearish trend, but the situation is not conclusive yet, as tomorrow’s stock reaction is crucial.
• 😀 Key technical levels to watch are the 307-310 resistance zone and the 200-day moving average at around 313.
• 😀 The Exponential Moving Averages (EMAs) are still showing bearish signals, and the crossing of these EMAs could signal further decline.
• 😀 The weekly chart shows that a drop below 270 would be a significant red flag, possibly indicating further downside toward the 230s.
• 😀 There is a slight hope for bulls if the stock shows a bounce around the $290 area, with the Stochastic Momentum Index (SMI) showing potential support.
• 😀 If Tesla cannot reclaim the rising daily channel and break above 307-310, the bearish trend may continue.
• 😀 A potential retest of the low 270s could be on the horizon if the bearish trend persists, which would be a critical level to maintain bullish hope.
• 😀 Despite the bearish outlook, there is still room for a short-term bounce, but the long-term perspective depends on how the stock reacts to the delivery numbers and technical levels in the coming days.

Q & A

What is the main topic of the video?

The main topic of the video is an update on Tesla stock, with a focus on recent market trends, technical analysis, and the potential effects of upcoming events on the stock's performance.

What triggered the recent drop in Tesla's stock price?

The drop in Tesla's stock price was primarily triggered by a conflict between Elon Musk and Donald Trump, which escalated late at night, causing the stock to tumble sharply.

What was the significance of the 307 level for Tesla stock?

The 307 level was a key support level for Tesla. However, due to the drop, Tesla gapped below this level and failed to recover it, which turned it into a resistance point instead of support.

What is the importance of the upcoming delivery numbers for Tesla?

The delivery numbers are significant because they could act as a major catalyst for Tesla stock, potentially causing a big move up or down depending on how the market reacts to the numbers.

What indicators is the analyst watching to assess Tesla's future movement?

The analyst is watching the daily rising channel, the exponential moving averages (EMAs), and the 307-310 resistance zone. The SMI (Stochastic Momentum Index) is also being monitored for potential signs of a reversal.

What would signal a bearish trend for Tesla stock?

A bearish trend for Tesla would be confirmed if the stock continues to fail to reclaim the 307-310 resistance zone, and if the EMAs cross below the 50-day moving average, signaling further downside momentum.

What are the implications if Tesla stock falls below 270?

If Tesla stock falls below 270, it would represent a major red flag. It would suggest the stock is in a more bearish phase and could lead to a further decline, potentially to the 230s.

What is the analyst's opinion on the current market sentiment for Tesla stock?

The analyst feels that the market sentiment for Tesla is currently bearish, with diminishing bullish hope. However, there's still potential for a bounce if certain technical levels are regained.

What is a potential scenario for a short-term rebound in Tesla's stock?

A short-term rebound could happen if the SMI indicator, which is at the bottom of the spectrum, starts to curl upwards, suggesting that the stock could find support around the 290 level and potentially recover.

What does the analyst mean by 'dead cat bounce' in the context of Tesla stock?

A 'dead cat bounce' refers to a temporary recovery or upward movement in the stock after a significant drop. The analyst suggests that the previous rally in Tesla was a dead cat bounce, and the stock is now more likely to make a fresh lower low.