Tesla stock rebounds, but remains in a downtrend.

Tesla’s stock rebounded in early June after touching a 2½-year low of 175.0, but the market remains below a longer-term downtrend line drawn from the highs of December 14, keeping the broader outlook negative.

Momentum indicators paint a neutral short-term picture, with the RSI barely above 50, and the MACD flirting with both its zero and trigger lines.

If the bears retake control, support may be found near 207.0, the region that halted the drop on June 12, with steeper declines eyeing the 175.0 level. A downside break would signal a resumption of the broader downtrend, shifting the focus to 162.50, an area defined by the inside swing high on February 11, 2016.

On the upside, a bullish violation of the 50-day SMA currently at 225.0 and the descending line would turn the attention to 235.0 – the June 18 high. After that, the next obstacle may be the 258.0 level, where another break would mark a higher high, shifting the broader outlook to a more neutral one.

Summarising, the stock remains in a longer-term bear market, with a move above the downtrend line and 258.0 needed to bring that into question.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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