font size
Tesla stock is down about 30% since Elon Musk completed his purchase of Twitter. Technical analysts say the vulnerability transcends anything to do with social media.
Lisa Johansen-Kubitz/Bloomberg
Tesla
The stock is down again, and investors are pointing fingers again Twitter. However, fixing Twitter may not be enough to fix the electric car giant’s posts. idiomatic Stock market analysts see other factors at play.
Tesla stock (Stock ticker: TSLA) opened higher on Tuesday, along with the rest of the market after slower-than-expected US inflation data for November. The stock was trading at $175.05 early in the day, up more than 4%.
Investors didn’t have much time to celebrate as the gains didn’t hold, and Tesla stock hit a new 52-week low on Tuesday at $158.03. They finished the data at $160.95, down 4.1%. while the
increased by 0.7%, and
advance 0.3%.
Tesla stock is now down about 11% for the week, and down nearly 30% since CEO Elon Musk completed his Twitter acquisition, underperforming
increased by nearly 33% over that period.
Investors are hoping Musk will stop tweeting so much and things will calm down on his social media platform. This is the catalyst that Tesla’s bulls want.
Musk will come to his senses that attacking his waking customer base is hurting Tesla. Brand He will moderate his political views
(FFND) Co-Founder, Shareholder of Tesla, Gary Black on Twitter Tuesday. Musk is also expected to name a new Twitter CEO soon.
These measures may not give the electric vehicle giant’s shares the boost it hopes for. Tesla stock chart still looks weak. Technical traders and analysts look at chart patterns, moving averages, and resistance levels as a shortcut to fundamentally understanding how investors feel about a stock, and where the stock could be headed in the short term.
Since early November, Tesla’s stock chart appears to be ending a head and shoulders pattern which looks like someone is shrugging off. The arrow reaches an apex and descends, forming the first shoulder. A new high is reached, followed by another low, to create the head. A final rally brings the stock back to the first shoulder high, only for another drop to bring the price below the “neckline” of the head.
The break of $180 about a month ago was a signal to technical traders that more pain was coming for Tesla stock investors. Stocks got some support around $166, but are now below that level. The support area is between $120 and $155 from late 2020 [levels] Looks like next,” says CappThesis founder and technical stock market analyst Frank Cappeleri.
Katie Stocktonwho founded technical analysis shop Fairlead Strategies, believes that if Tesla stock closes below $166 for a few weeks, it will run to $107.
John Rock From 22V the search was the most bearish of these three, keeping Tesla’s stock bottoming closer to $100. “It’s a tendency to overshadow his tweets, either way,” Rocky says.
None of the three have underlying price targets for Tesla shares. They’re just trying to tell investors looking at earnings and cash flow what the chart says about investor sentiment. This is not what optimistic investors want to hear.
If Tesla stock closes at current levels, its market capitalization will be below $500 billion for the first time since November 23, 2020, according to market data from Dow Jones.
Write to Al Root at [email protected]
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”