Stock of the day: Tesla

Tesla has been one of the standout stocks recently, enjoying significant gains following Donald Trump’s election as president. The stock’s rally is attributed to strong market sentiment and the close connections between Donald Trump and Elon Musk, fostering a favorable outlook for Tesla’s future.

Primary View: Bullish Bias as Long as Support Holds

• Support on $418: The ongoing bearish correction, which started in mid-December, has brought the price down to a key horizontal support level at $418, marked in yellow. As long as the price remains above this level, the midterm sentiment remains bullish.
• Broad Market Influence: This correction aligns with a broader decline in the indices, suggesting it may just be a temporary dip in a larger uptrend.

Alternative View: Bearish Breakdown

• Signal to Sell: A daily close below the $418 support would be a strong signal to sell, indicating a potential shift in midterm sentiment to bearish. Such a move could trigger further downside momentum.

Outlook

Tesla is at a critical juncture. The $418 support level will likely dictate the stock’s next move. If buyers defend this level, the bullish trend could resume. However, a breakdown below this key area would signal a midterm bearish reversal, making today’s closing price particularly significant.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-tesla-18