Tesla Sell Signals Confirmed (Technical Analysis, Downgrade)

Summary:

  • This is a technical analysis article. In our previous article, we identified Tesla as a stock with Sell Signals. Those signals have not changed, despite the Musk interview on CNBC.
  • Following a classical technical pattern, price moved up to fill the gap down after earnings, as the bullish bargain hunters bought on weakness. The Musk interview created another bounce.
  • We think Tesla will drop again, not only because of our proprietary SID sell signal, but the other sell signals shown on the chart below.
  • Moving averages for the 200, 50 and 20 day trends show bearish downtrends. Price is putting lower highs and lower lows in place, typical for downtrend stocks.
  • The fundamentals are driving these price trends. Tesla is a great company, but it is overvalued, growth is threatened, and it no longer owns the market.

King And Pawns On Chess Board

AndreyPopov/iStock via Getty Images

As the electric vehicle (“EV”) battle heats up and the pawns take on the king, in this case the auto industry taking on Tesla, Inc. (NASDAQ:TSLA), we can expect TSLA’s growth and profitability to

We expect to see selling into strength.

TSLA bounce fails to change sell signals. (stockcharts.com)

targeting 415 support

SPY drops on debt ceiling news (stockcharts.com)


Analyst’s Disclosure: I/we have a beneficial short position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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