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A Look at Tesla’s Technical Indicators, Support, and Resistance

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Updated

Tesla’s Q3 2018 vehicle data

In the previous part of this series, we looked at Tesla’s (TSLA) valuation multiples. While the company’s valuation multiples have fallen sharply in 2018 so far, they remain much higher than the valuation multiples of mainstream automakers (XLY) General Motors (GM), Ford (F), and Toyota (TM).

Tesla stock posted its all-time high of ~$389.61 in September 2017, and it traded 20.5% below that stock price on September 26. Year-to-date, Tesla stock has dropped ~0.6%. Now, let’s move on by looking at Tesla’s updated technical support and resistance levels.

Key technical indicators and levels

On September 26, Tesla stock settled at $309.58 after violating a prior resistance level of ~$290.00 per share. Its recent price action has shown strength. The $275.00 level should act as an important support level in the coming sessions, which could be followed by its next key horizontal support near $250.00.

Its 50-day SMA (simple moving average) was near the $312.00 level, which is an important resistance area. A violation of an important resistance level could attract fresh buying in TSLA stock. The next key resistance level lies near $338.00.

Tesla’s 14-day RSI (relative strength index) hovered at 53.70, above the line of equilibrium. An RSI indicator that’s just above the line of equilibrium reflects minor strength in its underlying momentum. The conflict between Tesla’s bulls and bears could intensify after the company reports its third-quarter vehicle production and deliveries data.

Next week in the auto industry

In the first week of October, Ford and Fiat Chrysler (FCAU) are expected to report their September US sales data while GM plans to report its third-quarter sales data.

On September 27, the SEC sued Tesla’s CEO, Elon Musk, related to his recent tweets about “taking Tesla private.” Please read Tesla Drops ~11% in After-Hours Trading as the SEC Sues Elon Musk to learn more.

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