Assessing Tesla’s Tough Week: A Long-term Technical Perspective

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By Ronald Tech

Thursday’s Tumble and Friday’s Tepid Recovery

Investors were left reeling after Tesla, Inc. (NASDAQ:TSLA) saw its shares plummet by 12.13% on Thursday, hitting its lowest level since May 25, 2022, at $182.63, according to Benzinga Pro data. The stock managed a marginal uptick of 0.34% on Friday, ending the day at $183.25. With the stock showing signs of being oversold, the big question is whether it presents an attractive opportunity at its current price.

A Promising Long-term Chart

Despite the recent downturn, an interesting insight from a long-term chart suggests that Tesla may not be down for the count just yet. As per a post on Stocktwits, the stock has consistently followed an upward trend line dating back to the start of 2020. Each time the stock has weathered a crash, formed a long-tailed candle, and hit this trend line, it has bounced back with resilience. The occurrence of a long-tailed candle typically indicates a rejection of lower prices.

Looking Ahead: Near-term Prospects and Analysts’ Take

While Tesla faces a near-term slowdown without any major catalysts, factors such as vehicle price adjustments could still create ripples in the market. In the coming months, first-quarter deliveries and updates on the company’s next-gen electric vehicle, the Giga Mexico factory, and the India launch could potentially sway the stock’s performance.

Despite the recent earnings report prompting analysts to revise down their estimates and price targets for Tesla, the average analysts’ price target of $222.36, based on data from TipRanks, still reflects a potential upside of over 21%.

Is it time to jump on the Tesla rollercoaster and hold on for another wild ride? Only time will tell.

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