Tesla, Inc. Price Analysis Powered by AI

Analysis of Tesla, Inc. (TSLA) Price Movement

1. Trend Analysis:

The recent data reflects a substantial downtrend in Tesla's stock price from December 2024 through March 2025. The stock peaked at $488.54 on December 18, 2024, then trended downward, reaching a low of $222.14 on March 10, 2025. This represents a significant shift from bull market highs to bearish pressures, approximately a 55% retracement from the highs.

2. Volume Analysis:

Volume spiked on significant down days, notably on March 10, 2025, with an impressive 189 million shares traded. Increased volume on down days generally signals strong bearish sentiment as lower prices attract more selling. Contrastingly, lighter volumes observed on upward movements indicate less conviction from buyers.

3. Support and Resistance Levels:

• Resistance: $263 (Recent high on March 11, 2025, during intraday rally) and longer-term resistance at $300 from early January 2025 reversals.
• Support: The $220 level seen on March 10-11 acted as the immediate support and might see retesting.

4. Moving Averages (MAs):

The 50-day MA has crossed below the 200-day MA (commonly known as a ‘death cross’), often signaling an extended downtrend. Current prices are far below these averages, reinforcing bearish trends.

5. Relative Strength Index (RSI):

The RSI has been trending well below 30 since early February, indicating oversold conditions. While this suggests potential for a technical bounce, persistent low RSI trends imply continued bearish control.

6. Fibonacci Retracement:

Analyzing the fall from December highs, retracements of around 23.6% to 38.2% (near $260-$300) have not held, yet minor bounces occur around 61.8% retracement from lows near $220, making this a possible short-term support area.

7. Bollinger Bands:

Recent intraday data with price touching the lower band usually signals high volatility and often a reversal. Prices have oscillated near the lower band, highlighting strong downtrend volatility but with some narrowing which could suggest consolidation preceding the next breakout.

Conclusion

The overwhelming evidence from trend alignments, volume, moving averages, and RSI suggests sustained bearish forces in play. Prices slightly above immediate support ($220) show some signs of consolidation, yet key technical indicators favor continuation of the downtrend.

Decision:

Sell - Take a short position to capitalize on potential further downward movement.

Target & Price:

• Open Price: $230.58 (current price aligns well for opening a short position following price action patterns).
• Close Price: $220.00 (Targeting support retest & profit capture after potential breach).