Current trend

Shares of Tesla Inc., a leading manufacturer of electric cars, are moving within a long-term downward channel: at the end of last year, the price reached its upper limit of 265.62 (Murrey level [ 1/8]), after which it resumed its decline and moved into the negative part of the trading range Murrey and is now trading at 171.88 (Murrey level [3/8]). Under these conditions, the development of negative dynamics around 140.62 (Murrey level [1/8]) and 125.00 (Murrey level [0/8]) is more likely. If the key “bullish” central mark of the Murrey trading range 187.50 (Murrey level [4/8]), supported by the middle line of Bollinger bands, is broken upwards, growth to 218.75 (Murrey level [6/8]) and 234.38 (Murrey level [7/8]) may resume.

Technical indicators reflect the continuation of the downward trend in the market: Bollinger Bands reverse downwards, the MACD histogram is stable in the negative zone, and Stochastic is directed upwards, approaching the overbought zone, which reflects the likelihood of a reversal.

Support and resistance

Resistance levels: 187.50, 218.75, 234.38.

Support levels: 156.25, 140.62, 125.00.

Trading tips

Short positions may be opened below 156.25, with the targets at 140.62, 125.00 and stop loss 168.50. Implementation time: 5–7 days.

Long positions may be opened above 187.50, with the targets at 218.75, 234.38 and stop loss 177.00.