Stock of the Day: Tesla

In today’s stock of the day, I’d like to focus on Tesla, which recently gave traders a glimmer of optimism. On the 8th of August, the stock broke out to the upside from a symmetric triangle pattern, marked with red lines. That escape injected a positive sentiment into Tesla’s chart and hinted at the possibility of a fresh bullish wave.

But the wider market backdrop is pulling in the opposite direction. Indices are declining, and the broader bearish mood across equities is weighing heavily on Tesla as well. Instead of capitalizing on its breakout, the stock quickly slipped into a bearish move of its own, undermining the initial bullish momentum.

At the moment, the price is restricted by a blue resistance line. Only a decisive daily close above this resistance would confirm the earlier breakout and restore a proper buy signal. Without that, the risk remains high that Tesla will slide back into the triangle, which would invalidate the bullish scenario and open the door for a deeper correction.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-tesla-27