Tesla Inc (NASDAQ: TSLA) traded lower on Friday, after hitting resistance at 935. Overall, the stock remains below the key barrier of 975, which acted as a temporary floor for the stock between April 11th and 25th, before being broken to the downside on April 26th. This combined with the fact that generally the price structure has been lower highs and lower lows since April 5th, paints a negative short-term picture.
In order to get confident larger declines though, we would like to see a clear dip below 820, marked by Thursday’s low. This will confirm a forthcoming lower low and may initially pave the way towards the 755 barrier, marked by the low of March 14th, the break of which could target the low of February 24th, at 708. If there are no buyers to be found neither near that zone, a break lower could see scope for declines towards the 645 territory, marked by the low of August 17th, 2021.
Turning our gaze to the short-term oscillators, we see that the RSI, already below 50, has turned down again, while the MACD, remains below both its zero and trigger lines. Both indicators detect negative speed and support the notion for further declines.
On the upside, we would like to see a clear rebound back above the key zone of 975 before we start examining whether investors are overly interested in this stock again. This could encourage advances towards the 1090 territory, marked by the high of April 21st, the break of which may allow extensions towards the high of April 5th, at 1155.
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