Tesla Stock Chart Analysis: Correction Targets
Tesla Inc (TSLA) is falling again today, trading near the $775.00 level. Let’s take a look at the Tesla stock chart analysis. At the low of the day of $762.01, Tesla hit the daily 50 moving average. Considering this is the first time the stock has hit the 50 moving average in months, it is likely to find good support in the near-term. While the near-term signals good stock support on Tesla, the longer-term outlook is not as rosy. If/when Tesla breaks the 50 moving average to the downside, there is no major technical support until it hits $500.00. At $500.00 Tesla has a major pivot high from September 2020. In addition, just below $500 is the 50% Fibonacci retrace of the move from the 2020 lows to the 2021 highs.
Lastly, the daily 200 moving average is grinding up and will likely near the $500.00 level within a few months. This gives us a major support level to watch. Remember, Tesla was trading just above $400.00 when the announcement of its inclusion into the S&P 500 hit. The move from $400 to $900 was on no material change to the company in terms of growth or prospects. This allows sane investors to realize there is likely an air pocket that needs to be filled at least down to $500.00 on Tesla.
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