Tesla May Face Resistance
Tesla bounced in August, but some traders may think the EV giant faces resistance.
The first pattern on today’s chart is the weekly low of $368.60 on June 26. TSLA held that level before its July 22 earnings report, but fell through it after the numbers hit. The stock has returned to stall at the same price zone, which could mean that old support is becoming new resistance.
Second, the 50-day simple moving average (SMA) is below the 200-day SMA. That may suggest a longer-term downtrend has begun.
Third, the falling 50-day SMA may be consistent with intermediate-term weakness.
Fourth, stochastics are dipping from an overbought condition.
Next, traders may eye the price zone between TSLA’s 52-week low of $297.38 and its 2025 low of $214.25 for potential probing.
Finally, TSLA is a highly active underlier in the options market. (Its average daily volume of 2.7 million contracts ranks second in the S&P 500 behind Nvidia, according to TradeStation data.) That could help traders take positions with calls and puts.
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