Tesla Stock News and Forecast: TSLA stock set to resume fall and test $800

Tesla stock is set to open lower on Monday.
TSLA stock will likely test $800 on more geopolitical tensions.
Lucid Group reports earnings after the close on Monday.

Ivan Brian FXStreet

Tesla (TSLA) shares look set to open lower on Monday as Russia Ukraine headlines continue to set the global financial markets narrative. It is hard to avoid the dominance despite what some might say are mildly positive signs for the electric vehicle leader.

Tesla Stock News

Cathie Wood has begun buying the dip in Tesla and took in another $3 million worth of Tesla stock on Friday. Despite this, Tesla shares are looking like they will open some 1% lower on Monday with Tesla currently at $802.83 in Monday's premarket. This would not be as bad as feared given the significant losses in European markets this morning. The German Dax is down nearly 2.5%, and the Eurostoxx 50 is down over 3%. Forecasting on a micro-level is being overpowered by the Russia-Ukraine conflict, so look for headlines here for future direction. Tesla is high beta and considered one of the riskier assets. Currently, we are in extreme risk-off mode across global financial markets. This has led to a surge in the dollar and gold, traditional safe-havens. Keep an eye on these assets and geopolitical headlines for the more meaningful directional queues.

Tesla Stock Forecast

Looking back with the benefit of hindsight, the repeated failure to break above $945 set up the technical picture for the recent falls. Tesla stock has now cleanly broken below the 200-day moving average, a feat it has not managed since June of last year. Back then it was a brief flirtation as it retook the 200-day the very next day. This time the case is different and could lead to long-term pressure on TSLA. $730 was briefly broken on Friday, but this level is significant and a close below will set stop losses in play most likely. The 9-day moving average is about to cross the 200-day, again significant as this has not happened in Tesla since October 2019.

Tesla (TSLA) chart, 1-day chart

From the weekly chart, we can see breaking and holding below $730 takes Tesla back to the consolidation phase from March and April of last year. This is a neat range between $700 and $600. That may hold Tesla stock for a time, but the bears will target $400 if they can push Tesla out of the support at $600. This is the consolidation phase from September and October 2020.

Tesla chart, weekly

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD trims gains; back to 1.3450-ish

The persistent weakness hurting the Greenback lends support to the British Pound and the rest of the risk-linked assets, sending GBP/USD to new two-day tops past 1.3480 on Wednesday. Indeed, Cable advances for the second day in a row helped by the constant optimism around a potential US-Iran deal.

EUR/USD hovers around two-month peaks near 1.1560

EUR/USD advances for the second day in a row, challenging multi-week highs in the 1.1560 zone on Wednesday. The persistent weakness hitting the US Dollar underpins the move higher in spot while market participants continue to closely follow developments from the Middle East and gear up for upcoming key data releases in the US jobs market. On Thursday, all the attention will be on the release of weekly Claims alongside Challenger Job Cuts.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

Gold vs Bitcoin Price Prediction: Breakout momentum builds on Strait of Hormuz deal hopes

Gold (XAU/USD) is accelerating its rebound near $4,250 at the time of writing on Wednesday amid easing geopolitical tensions after United States (US) President Donald Trump said that a deal to reopen the Strait of Hormuz was imminent. Bitcoin (BTC) mirrors the metal’s near-term bullish bias, edging higher toward the resistance at $65,000.

Taking out the lines in the sand

Good Day... And a Wonderful Wednesday to you! Well, just as I suspected, my beloved Cardinals' bats went silent last night in the Bronx, and they lost 0-2... The Yankees' bats were exactly a murderer's row, but they hit 2 homers and won. I said yesterday that the song : Just Once In My Life, could be the Cardinals' song after hitting 5 home runs the previous night!

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.