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Tesla Share Price Falls Amid Market Reaction to FOMC Rate Hike

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Written By: Eno Ikenna Eteng
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    Summary:
  • The Tesla share price ends the trading day lower as part of the market reaction to the rise in interest rates by 75 bps.

The Tesla share price has closed the day 2.57% lower as the markets respond negatively to the latest FOMC interest rate decision. The Nasdaq 100 index and other US indices all traded lower as the FOMC jerked up interest rates by 75 basis points after its two-day meeting on 21 September. 

The Tesla stock price is now in correction mode after posting several days of gains that peaked at the $313 resistance. This price mark has capped the Tesla stock price since early May 2022. 

The drop seen in the Tesla share price also comes as a Tesla Megapack caught fire at a California battery storage facility. The facility, which is two years old, houses about 256 Tesa Megapack battery packs. It was recertified in April 2022. So far, there are no confirmed injuries, and firefighters were gaining a hold of the fire as of writing.

Tesla Share Price Forecast

The Tesla share price candles are on course to aim for the 292.24 support (25 August/14 September 2022 lows), following the rejection of the advance at the 313.46 resistance (4 August and 20 September highs). If the bulls fail to defend this pivot, the 280.00 psychological support at the 8 September candle low becomes the next target. Shortly after, 274.10 becomes the next port of call, being the 28 July low. Only extensive price deterioration will bring 254.39 (9 June/8 July 2022 lows) into the mix. 

On the flip side, a break of the 313.46 resistance blows the lid open for the bulls to push toward the 324.69 resistance (18 April 2022 lows). A further advance targets the 341.75 resistance, which stands as the barrier between the bulls and the 360.60 psychological barrier (6 April 2022 high). The 5 April 2022 high at 383.70 is the next target in line for the bears.

TSLA: Daily Chart

This post was last modified on %s = human-readable time difference 07:30

Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng