For Tesla, a lot is up in the air. After hitting a key breaching point recovery seems to be the question on traders’ minds.
“The overall market has started to rotate back into growth names, which has helped Tesla find at least a short-term bottom for now,” said our chief market analyst Jake Wujastyk in response to a Bloomberg article posted yesterday. This short-term bottom correlates with the YTD lows of Tesla giving reassurance to buyers who have seen these prices before.
The stock is up despite a bunch of negative news, traders wonder why. Looking at the technical indicators, the stock has bounced from oversold levels according to the RSI Index and also trading around the 200 DMA. Has the stock finally reached a floor?
“The overall market has started to rotate back into growth names, which has helped Tesla find at least a short-term bottom for now. The Trendspider monthly seasonality tool also shows an 80% win rate for the month of June over the last 5 years. This means that 80% of the time, June closes higher than May’s monthly close which suggests possibly some bullishness into the beginning of summer.”
“The daily chart currently shows the price right at the 200-day simple moving average which was an area where the price bounced during the Covid crash lows.”
Technical Look At Price Action: