Tesla (NASDAQ: TSLA) stock price has been in a tailspin for the past few days. The stock surged to its fresh yearly highs and the highest level in the last 10 months before getting rejected from the $275 level. The shares failed to gain strength above the $250 level and are now trading 12.5% below the yearly peak.
On Monday, Tesla share price plunged 6.06% as the sell-off continued in the first trading session of the week. The stock closed the day at $241.05, which is the lowest level in the last three weeks. The technical analysis reveals that a relief bounce could be just around the corner.
In a major development, the investment giant Goldman Sachs has downgraded its outlook on Tesla stock price from ‘buy’ to ‘neutral’. This comes as no surprise as the analysts at Barclays and Fidelity have also made similar changes in their outlooks.
Consequently, Tesla shares tanked very hard on Monday while also affecting the overall market sentiment. The S&P 500 and the NASDAQ 100 index closed the first trading session of the week with a loss. The intensity of the recent sell-off suggests a market reversal could be around the corner.
Advanced technical analysis of NASDAQ: TSLA reveals that the stock is on its way to retesting the $218-$235 zone. This is a very critical region due to the convergence of multiple trendlines and a close vicinity to the 200-day MA.
Tesla stock price prediction will flip very bullish if the price successfully retests this region and flips it into a support zone. While it is too soon to predict the outcome of this retest, I expect at least a relief bounce from this zone in the coming weeks.
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This post was last modified on Jun 27, 2023, 12:53 BST 12:53