Key Technical Levels to Watch in Tesla Stock

Tesla stock

Last week, Tesla stock (TSLA) turned negative again after gaining 2.8% in the previous week. On July 6, the stock settled at $308.9 with a 9.9% weekly loss. TSLA ended the second quarter in positive territory with 28.9% gains. TSLA was the top gainer among auto stocks in the second quarter. During the quarter, other auto stocks (XLY) like General Motors (GM) and Ferrari (RACE) rose 8.4% and 12%, respectively. In contrast, Ford (F) and Fiat Chrysler (FCAU) lost about 0.1% and 7.9%, respectively, in the second quarter.

Key Technical Levels to Watch in Tesla Stock

Technical overview

The stock’s 50-day SMA (simple moving average) was at $311.24, which is above the stock price and suggests weakness in the short-term price trend. The 14-day RSI (relative strength index) indicator fell below the line of equilibrium last week to 41.6, reflecting a negative shift in the momentum. A key support in TSLA stock lies near the $305 price level, and a violation of this support could attract renewed selling pressure. On the upside, no major resistance was seen above the $333 price level.

Model 3 production

On June 18, TSLA posted a high of $373.73, not far away from its all-time high of $389.61. Since then the stock has lost about 17.3%. The company released its Q2 vehicle deliveries and production data last week. Despite meeting its Model 3 production rate target in Q2, its stock is witnessing negative movement, as many analysts question the sustainability of this high production rate. Read Was Musk Wrong? Tesla Longs Seem to Be Exploding to learn more.

In the next part, we’ll learn how Ford stock traded last week.