On Monday, the price of Tesla (TSLA) is rolling over once more. Shares were down 5.2% at the session low, setting new 52-week lows in the process. While the remainder of the mega-cap tech sector is doing reasonably well today, there has recently been intense selling pressure on the sector.
It appears like Tesla and Apple (AAPL) are the only companies in the tech sector keeping things afloat, while Apple is toying with a move lower in light of weekend claims of decreased iPhone manufacturing. Regarding Tesla, the stock had a terrible response to its third-quarter delivery figures in the beginning of October and then had a poor response to its earnings on October 19.
While the stock has managed to mount a few rebounds over the past five weeks, the bears have largely controlled the overall market movement. Shares are currently holding to a crucial support level as the stock spins below the $198.59 low from October, which could trigger a monthly down rotation for traders if the stock is unable to do so. If that’s the case, bulls might be keeping a close eye on two places as prospective purchasing chances.
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When To Buy Tesla Stock
The chart above makes it obvious that the $200 to $205 range has been a significant support zone for Tesla shares. Shares are currently falling below that level, but if the stock can rebound and reclaim that level, traders may be able to ride Tesla higher in the near future.
— Holger Zschaepitz (@Schuldensuehner) November 7, 2022
However, a larger move to the downside comes with a greater potential for long-term investors. In particular, the $182 to $187 range has seen two significant price increases for Tesla shares in 2021. The initial caused a 44% bounce. The stock’s ascent to record highs was sparked by the second, as shares eventually increased by more than 125% from this area.
Aggressive buyers will try for a comeback if it is retested. Things start to become interesting below that. Due to the fact that it was technically a breakout point on the chart, the $167.50 region is rather alluring. However, if we manage to spot a flush into the $150s, a much more alluring entry may become available.
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The 200-week and 50-month moving averages are currently between $150 and $160, however it would have to happen within the next two weeks to prevent the metrics we’re looking at from tracking upward.
— Ross Gerber (@GerberKawasaki) November 7, 2022
The monthly VWAP measure agrees. Don’t forget the $150 breakout level from 2020 either. Even though I’m not sure if there will be a decline in the $150 to $160 range, long-term investors should keep an eye on it.