Stock Market

Tesla Drops To New 52-Week Low As CEO Checks Blue Checkmarks

Tesla (NYSE: TSLA) shareholders must wondering what is going on. The stock is hitting new 52-week lows and the Chief Executive Officer is spending time these days at Twitter making sure that blue check marks go to the right people. Meantime, their car stock investment is worth less and less.

“Elon Musk certainly knows what he’s doing” is the pleasant financial media explanation that gets said and printed, but investors must be wondering about the difference between that explanation and the declining Tesla equity price. If the guy is so smart, why is he checking on blue check marks?

This is hard for mere investor mortals to understand, of course. You might think that the CEO of a company that’s just dropped even further, to even lower 52-week lows — you might think that he would be paying attention to those matters.

Experts on the issue, however, will helpfully educate you that it’s “genius” (or something) to be working elsewhere at 1 in the morning, making absolutely sure that blue check marks are going to the right people.

In the meantime, here’s what the daily price chart for Tesla (NASDAQ: TSLA) looks like now:

The stock is trading at is lowest levels for the past 52-weeks and, wait, there’s more: Tesla can’t even make it back to the down trending 50-day moving average (that blue line). It’s been headed basically downward for so long now that the 200-day moving average (that red line) has rolled over and is now trending lower.

The weekly price chart for Tesla looks like this:

You can see how clear it is that the stock has problems. That dotted red line indicates the support levels from the previous lows of February/March, 2021 and of May, 2021. The drop below that line is suggestive of investors reaching a “just get me out!” moment. The 50-week moving average is trending lower now and we’re about to see if the 200-week moving average can provide some kind of support.

Here’s the Tesla monthly price chart:

Could that possibly be an actual “head-and-shoulders” pattern on what was formerly one of the NASDAQ’s
hottest, most recognizable names? Yes is the answer and it’s not a happy chart formation. In fact, price chart analysts of the old school will still take the time to explain to you why it may be so bearish.

The classic point-and-figure chart for Tesla is here:

Note in the upper left corner, can you see where it’s says, in red, “P & F Pattern” followed by the words “double bottom breakdown on 16-Nov-2022?” Indeed. The stock has dropped from $312 to $169 — that’s a 45% slide, so far.

Tesla investors might be forgiven for being concerned that their CEO is devoting his time to the importance of blue checkmarks on a social media website.

Not investment advice. For educational purposes only.

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