Key Support and Resistance for Tesla before Semi Truck Unveiling
Tesla’s semi truck and volatility
So far in this series, we’ve seen how Tesla Motors (TSLA) stock is trading before its electric semi truck unveiling event scheduled for November 16, 2017. We’ll also look at analyst expectations for the semi truck and analysts’ views on TSLA stock. If we look at Tesla’s stock price action around a product unveiling or launch event, volatility usually tends to increase. In such a scenario, it’s important for investors to be aware of the stock’s key technical areas. These technical support and resistance levels could help investors refine their entries and exits from the stock.
Interested in TSLA? Don't miss the next report.
Receive e-mail alerts for new research on TSLA
Tesla stock: Key support and resistance levels
On November 10, 2017, Tesla stock was trading on a weak note at $302.99. About two months ago, on September 18, 2017, the stock posted a fresh all-time high of 389.61. That all-time high could continue to act as a key resistance level. An immediate horizontal resistance could be seen near $340, which is near its 50-day SMA (simple moving average) of $343.70.
Tesla’s 14-day RSI (relative strength index) level as of November 10, 2017, was rising up from oversold territory and hovering at 33.1, below the line of equilibrium. An RSI indicator below the line of equilibrium reflects an underlying weakness in momentum.
An immediate support level was near $298, and a breach below that support level could trigger a sell-off.
Auto industry’s 3Q17 earnings season
Legacy auto companies (XLY) General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) all reported year-over-year increases in their third-quarter earnings. In contrast, Tesla reported its biggest quarterly loss in 3Q17. Be sure to visit Market Realist’s Autos page to stay updated on the latest news and 3Q17 earnings reviews of the auto sector.