The Tesla share price is once again testing a key area of support ahead of its founder’s appearance on prime-time T.V tomorrow.
U.S listed carmaker Tesla (TSLA) has been under the spotlight recently. A slew of negative press has left the stocks’ 2021 all-time high, far in the rear-view mirror.
The Tesla share price is currently trading at $663.54, some 26% off its ATH high of $900.13 and approaching key trend line support.
Last week I discussed the deteriorating technical outlook as the 50-Day Moving Average crossed below the 100-Day MA, signaling a bearish ‘death cross.’ However, The Tesla share price may have more pressing concerns in the immediate future.
Considering the chequered past of Elon’s media appearances. Investors are no doubt concerned about what is to come in tomorrow’s show. Whether he’s dad dancing, pot-smoking, or smashing unbreakable windows, Musk has a habit of generating a P.R Disaster every time he appears on-screen. Markets, in general, do not like unpredictable outcomes, and the Tesla share price action reflects that.
Musk, earlier this week, made the mistake of asking Twitter for ‘Skit’ Ideas for his appearance. The Show’s hosts were quick to point out that ‘SNL’ performs sketches and not skits. The rest of the internet was not as polite.
If this is anything to go by, the Tesla share price may be in for a bumpy ride today and quite possibly next week.
The stock is currently trading below both the 50 and 100-Day MA’s. This indicates the market is trading with a negative bias.
In place from the August 2020 low of $190, an ascending trend line now sits at $653. This, for me, is a ‘must hold’ marker. Should this level fail, there is a possibility the Tesla share price slides further. The 200-Day Moving Average at $574 then becomes the next logical target.
Above the market, I see resistance at the 50 and 100 Day MA’s ($681 and $727). With further resistance offered by an ascending trend line at $744, in place from the January 2021 high.
Trading ahead of Musks’ performance carries more risk than I am comfortable with and would suggest that, like me, traders tune in for what may be an entertaining 90 minutes of T.V.
It may also provide a great indicator of where the Tesla share price is heading next.
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