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Tesla Stock Price Prediction: Can TSLA Sink Below The $200 Mark?

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Tesla Stock Price Prediction: Can TSLA Sink Below The $200 Mark?
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Tesla’s stock price had been on an inclining trend after the breakout of a trendline resistance on the daily chart. Recently, the stock’s pre-results sentiments were positive which added fuel to the ongoing trend, and the price gained nearly 40% in the 2 months prior to the quarterly results.

The quarterly results came out to be better than the estimates done by the analysts. The company reported 24.927 Billion as revenue, 705.82 Million more than expectations and the earnings were reported to be 14.78% better than the estimates. 

The stock price fell by almost a quarter in the last month, after a brief surge following the earnings report. Investors took advantage of the higher price to sell their shares and lock in profits. The stock ended the previous trading session near the support level that it had before the earnings announcement.

Tesla (NYSE: TSLA) makes and sells electric vehicles and energy systems. It has two main segments: Automotive and Energy. The Automotive segment produces and sells electric cars and regulatory credits. The Energy segment offers solar panels, batteries, and other energy solutions. The company dominates the US electric car market with about 70% share. 

Tesla  Stock Price Prediction: Can TSLA Sink Below The $200 Mark?
Source: barchart.com

Tesla stock derivatives data analysis states that the current implied volatility in the market is 46.90% with an increment of 1% in the last trading session. The at-the-money strike price has 6,682 open contracts on the put side and 1,129 open contracts on the call side indicating the dominance of buyers at the current level. The PUT/CALL ratio is 0.81 indicating a neutral sentiment in the market as per the data.

Tesla Stock Price Showed A Free Fall Following The Breakdown Of 50 EMA

Tesla  Stock Price Prediction: Can TSLA Sink Below The $200 Mark?
Source: Tesla 1D. NYSE By TradingView

The short-term outlook of the analysts indicates that If the price is nearing a previous breakout zone where the stock may observe buying volume and the free fall in the price may come to an end. Moreover, if the price fails to get the buyer’s support at the current demand zone then the sellers may push the price to test lower support levels. 

The stock has a bright future as the demand for EVs is increasing which also has been observed in the quarterly results, according to analysts, who expect it to keep rising in the long run. The price might face some temporary drops, but they will be seen as opportunities for more buyers to join the market and push the price back to its long-term direction.

Technical Indicators prediction about the current trend

Tesla  Stock Price Prediction: Can TSLA Sink Below The $200 Mark?
Source: Tesla 1D. NYSE By TradingView

The technical indicators including RSI and MACD opinion rating for the stock is a 24% buy with a weakest short-term outlook on maintaining the current trend. long-term indicators are optimistic and fully support the continuation of the ongoing trend.

Conclusion

Tesla’s stock price prediction concludes that the stock price hiked before the quarterly results. However, the short-term gain triggered a sell-off to decline the price by nearly 24% in the past 4 weeks. The price is near a support level that could attract buyers. Analysts are optimistic about the long-term trend of the stock, as the demand for EVs is growing. The put/call ratio is neutral, indicating a balanced market sentiment. The stock has the potential to recover and resume its uptrend.

Technical Levels

  • Support levels: $210.23 and $183.53.
  • Resistance levels: $256.57 and $287.25.
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

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