Traders Take Note: Tesla Inc (NASDAQ:TSLA) Stock Drops, Weakness in Technical Momentum
(TSLA Price of Stock at Publication: $253.54)
Take Note: Tesla Inc (NASDAQ:TSLA) has hit some technical weakness in its momentum, and while it has not broken down all the way through support -- watch the key levels that we discuss below and further, watch the stochastics and technical oscillators for any kind of momentum gaps.
The company has a two bull momentum rating which indicates weakness -- but not a full scale breakdown. There can be a contrarian urge to enter a new long position as the stock drops, but as of this moment, the stock price is moving lower and may yet weaken further. If a reversal becomes apparent, waiting for that strength in the technicals may be more prudent than jumping in as the stock drops.
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TSLA is up +18.8% over the last three months and up +22.2% over the last six months. The stock price is up +13.9% over the last year. The current stock price is $253.54.
TSLA Stock Returns
If you're looking for the simplest version of this, here it is -- when the short-term moving averages are above the long-term moving averages that indicates relative strength in the technical. Then see the current price relative to the highest moving average and you will have a "back of the envelope" technical indicator in your back pocket for any stock at any time.
The blending and weighting of numbers above created the technical model built by Capital Market Laboratories (www.CMLviz.com). Note the stock price at publication ($253.54), since the technical rating is based on intraday stock prices.
Technicals | Support: 243.69 | Resistance: 262.05
Golden Cross Alert: The 50 day MA is now above the 200 day moving average.
As we noted above -- the back of the envelope rule here is that when shorter-term moving averages move above the longer-term ones, momentum is building. We have that right now.
Swing Death Cross Alert: The short-term 10 day moving average is now below the 50 day moving average.
Recall that when we see the shortest-term moving average (10-day in this case) fall below any other moving average (50-day in this case), it indicates weakening momentum.
Tesla Inc has a two bull (low rated) technical rating because it's trading below both its 10 day and its 50 day simple moving averages. We do note that the stock is trading above the long-term 200 day moving average.
We now turn to the actual numbers driving this rating:
Tesla Inc (NASDAQ:TSLA) rating statistics:
10-day moving average: $253.97
50-day moving average: $254.09
200-day moving average: $219.82