Tesla Stock Price and Forecast: Will TSLA stock crash on Tuesday?
- Tesla stock performed well on Friday, rallying by 1.75%.
- Tuesday is likely to see TSLA shares fall sharply.
- Tesla had some negative weekend press, yields are moving higher.
So begins the shortened week due to yesterday's Martin Luther King, Jr. holiday, but it may be no less dramatic. Already it is looking like stocks will be under pressure as yields again rise, and investors begin to nervously adjust their portfolios. Friday has seen some calm descend on markets with the NASDAQ outperforming, which helped Tesla to a solid 1.75% gain, closing at $1,049.61. However, things are about to get ugly on Tuesday. European markets are already in the red, and an early gauge of the futures markets shows the NASDAQ indicating it is headed down nearly 2% and plummeting by 260 points.
Tesla Stock News
The Wall Street Journal reported over the weekend that a Tesla lawyer asked a law firm it uses, Cooley LLP, to fire an attorney. The attorney in question had previously worked for the SEC and had interviewed Elon Musk and been involved in the SEC probe into Elon Musk. The probe was back in 2018 and surrounded Elon Musk's claim that he had secured funding to take Tesla private. It remains to be seen if this hangs over the stock on Tuesday. The extra day may mean that the story fades from investor attention. However, the stock is going to struggle on Tuesday either way, and added to this is the continued selling from Cathie Wood of ARK Invest.
Tesla Stock Forecast
The chart is not clear on Tesla. We have a medium, long-term uptrend, but just recently things have started to look more bearish. The short-term downtrend is highlighted with a series of lower highs and lows. The most recent low at $980 is our pivot point. Above here the risk reward is skewed to more short-term gains, but below it opens up a target of $886. We feel this will likely be tested on Tuesday.
While $980 is the short-term pivot, $886 is the medium-term pivot point. A break brings the important 200-day moving average at $804 into view. TSLA has not been trading below its 200-day moving average since back in August of last year.
Tesla (TSLA) chart, daily
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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.
