In this idea, I will provide an analysis of Tesla's stock using simple language and concepts. I'll focus on Tesla's historical consolidation phases, recent performance, and the technical factors that suggest potential resistance and a possible downside move.
Tesla's Consolidation Phases
Tesla has experienced two significant consolidation phases in its history. The first occurred from 2011 to 2013, and the second lasted from 2014 to 2020. Interestingly, during the COVID-19 crash in 2020, Tesla remained resilient and has continued to be strong ever since.
Current Situation
Currently, Tesla's stock price is facing a crucial challenge. It is trading within a large channel, where I see strong support levels around the mid-line and significant resistance at the upper rail of the channel. On two occasions, Tesla found support at the lower rail, with the most recent occurrence near $100 after reaching an all-time high near $415.
Price Movement and Recovery
After reaching its all-time high, Tesla's stock price dropped approximately 75%. However, since January 2023, it has made a significant recovery, rising by about 170% from the lows.
Resistance and Potential Downside
These impressive recoveries often surprise those who have a pessimistic view (BEARS) on the stock. Nevertheless, with the recent recovery of 170% and the current stock price of around $255, it is crucial to assess the potential resistance levels that lie ahead.
Technical Analysis
From a technical perspective, Tesla is facing resistance both from the channel's upper rail and the resistance created in January 2021. While other major players such as AAPL and MSFT have broken out and reached new highs, Tesla remains at this resistance level.
Potential Factors for a Downside Move
If Tesla fails to break out in the coming months, it is likely that the stock will drop back to levels below $100. This could be due to increased competition or potential poor sales. Regardless of the specific reasons, the technical setup suggests the possibility of a multi-week or multi-month rejection. While dropping below $100 might be extreme, there is potential for a decent risk/reward setup for a downside move.
Tesla's stock has experienced significant consolidation phases and has shown resilience during market downturns. However, the current technical analysis indicates potential resistance at its current price level. If Tesla fails to break out in the near future, there is a possibility of a downside move, potentially leading to levels below $100. As always, it is important to consider multiple factors and conduct thorough research before making any investment decisions. Invalidation of this idea would be a breakout in the next 1-2 weeks in which case a move back to all time highs are very likely.
Tesla's Consolidation Phases
Tesla has experienced two significant consolidation phases in its history. The first occurred from 2011 to 2013, and the second lasted from 2014 to 2020. Interestingly, during the COVID-19 crash in 2020, Tesla remained resilient and has continued to be strong ever since.
Current Situation
Currently, Tesla's stock price is facing a crucial challenge. It is trading within a large channel, where I see strong support levels around the mid-line and significant resistance at the upper rail of the channel. On two occasions, Tesla found support at the lower rail, with the most recent occurrence near $100 after reaching an all-time high near $415.
Price Movement and Recovery
After reaching its all-time high, Tesla's stock price dropped approximately 75%. However, since January 2023, it has made a significant recovery, rising by about 170% from the lows.
Resistance and Potential Downside
These impressive recoveries often surprise those who have a pessimistic view (BEARS) on the stock. Nevertheless, with the recent recovery of 170% and the current stock price of around $255, it is crucial to assess the potential resistance levels that lie ahead.
Technical Analysis
From a technical perspective, Tesla is facing resistance both from the channel's upper rail and the resistance created in January 2021. While other major players such as AAPL and MSFT have broken out and reached new highs, Tesla remains at this resistance level.
Potential Factors for a Downside Move
If Tesla fails to break out in the coming months, it is likely that the stock will drop back to levels below $100. This could be due to increased competition or potential poor sales. Regardless of the specific reasons, the technical setup suggests the possibility of a multi-week or multi-month rejection. While dropping below $100 might be extreme, there is potential for a decent risk/reward setup for a downside move.
Tesla's stock has experienced significant consolidation phases and has shown resilience during market downturns. However, the current technical analysis indicates potential resistance at its current price level. If Tesla fails to break out in the near future, there is a possibility of a downside move, potentially leading to levels below $100. As always, it is important to consider multiple factors and conduct thorough research before making any investment decisions. Invalidation of this idea would be a breakout in the next 1-2 weeks in which case a move back to all time highs are very likely.