Source: TradingView.com
Tesla shares, the biggest gainer among Magnificent Seven stocks in the third quarter, fell Friday for the second straight day despite a better-than-expected deliveries report from the EV maker.
The stock rallied to a nine-month high in Thursday’s trading session before closing below the prior day’s low to form a bearish engulfing pattern, a candlestick formation that warns of a potential move lower.
Investors should watch crucial support levels on Tesla’s chart around $367 and $292, while also monitoring vital resistance levels near $489 and 660.60.
Tesla (TSLA) shares lost ground Friday morning after tumbling yesterday despite a better-than-expected deliveries report from the EV maker.
Investors appear to be locking in profits after the stock surged 40% in the third quarter, making it the best performing member of the Magnificent Seven over that period. Tesla shares were down 1.6% at $429 in recent trading, after dropping more than 5% on Thursday.
The stock has gotten a boost in recent months from CEO Elon Musk’s renewed commitment to the company after a stint working for the Trump administration, as well as investor optimism about the company’s development of autonomous driving systems and robotics as part of a more-intense focus on AI-related opportunities.
Investors will be watching for further business updates from Tesla when the company reports earnings on October 22.
Below, we take a closer look at Tesla’s chart and use technical analysis to point out crucial price levels worth watching out for.
Since breaking out from a broad ascending triangle last month that coincided with a bullish golden cross forming on the chart, Tesla shares had continued to trend higher.
However, in Thursday’s trading session, the stock closed below the prior day’s low to form a bearish engulfing pattern, a candlestick formation that warns of a potential move lower. Moreover, yesterday’s selling saw the relative strength index fall to its lowest level since early September, signaling weakening price…
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