Stock of the day: Tesla
10 October 2024
In today's Stock of the day, I would like to highlight Tesla, which is currently facing some significant challenges. While Tesla remains above two key supports — the green area around $236 and the black uptrend line that has been connecting higher lows since August — there is growing concern that these supports may not hold. You might think that as long as Tesla stays above these levels, the sentiment remains positive. However, looking ahead, things seem less optimistic, and a bearish scenario could be unfolding.
If the price breaks below these two key supports, it will generate a strong signal to sell. Specifically, a daily close beneath the $236 support and the uptrend line would be a clear indication for traders to adopt a bearish outlook on Tesla. On the flip side, should Tesla bounce off these levels with a V-shaped reversal, it would create a compelling buy signal. The direction chosen here will be crucial in determining the stock's trajectory in the near future. Let's see how the price reacts and whether the supports will hold.