Analysts predict collapse of Tesla shares
2023.02.09 15:16
Analysts predict collapse of Tesla shares
By Kristina Sobol
Budrigannews.com – Tesla Inc.’s (NASDAQ:) technical analysts stated that it is “time to fade.” stock following the significant upward movement fueled by positive sentiment regarding the most recent price cuts.
They point out that the stock is up for the eighth day in a row and has more than doubled since its low on January 6. In addition, they note that the 24-day rate of change (87%) is the highest it has been since April 2020.
They stated, “We think the rally has largely run its course” despite the fact that they “certainly did not anticipate this type of move.”
They added, “We believe the 210-225 range represents a very strong area of resistance.” These were the previous lows in 2022, in February, May, and June. There should be a lot of supply because there was a lot of volume traded at that level. The difference between this year’s low ($102) and the all-time high ($414) is $220.79, or 38.2%. $226 is the declining 200 DMA.
The technical analysts also point out that Tesla is 29% above its 20 DMA, which is the widest spread since November 21 and has only been exceeded a few times in the company’s history.
They conclude, “Even if you are bullish on the name, these levels appear overextended.”
