Company: Tesla Inc
Current price: $749.50
Risk:Reward Ratio: ~1
Tesla rebounded around $610 on 28th February 2020, $20 above the potential support of $590 which was drawn in this previous analysis. Thus the $600 area may be considered a potential historical support. $950 area may be a potential resistance.
The DMI though shows that there is currently no strong directional trend, with the ADX sloping downwards and the +DI and -DI showing no divergence.
New entries or additional investments may be considered around the current nearest support area of $600. Failure of this support may see prices go towards the next support which is currently ~$390 – although it may form a new support anywhere above this.
Personally I am of the opinion that Tesla has great long term potential and any fall in price towards potential support is an opportunity to get in at strategic prices.
In the short term though, soft market sentiments, overpriced US market and the COVID-19 epidemic may cap gains or push prices lower.