Current trend

Shares of Tesla Inc., a leading manufacturer of electric cars, are trading around 218.75 (Murrey level [4/8]), where they fell at the end of the week before last after the presentation of Elon Musk’s new robotaxi project.

The head of the corporation demonstrated a driverless car and said that by 2026, the company would begin its mass production and sale for less than 30K dollars. According to observers, it was devoid of specific details and data based on which it would be possible to conduct economic modeling and calculate the feasibility of investments, so, Tesla Inc. shares fell by 9.0%.

There is uncertainty in the market as investors await the publication of financial statements for the previous quarter on Wednesday. Revenue may reach 25.41B dollars, exceeding 23.35B dollars last year but net income may decrease from 1.85B dollars to 1.68B dollars, and earnings per share may decrease from 0.66 dollars to 0.59 dollars. Analysts believe that slowing sales growth and high costs of producing robotic cars are having a restraining effect on Tesla Inc.’s profitability but do not rule out that the financial statements will be better than preliminary estimates and support the issuer’s stock.

Support and resistance

The trading instrument is at 218.75 (Murrey level [4/8]). After consolidation below, the decline may continue to the area of ​​203.12 (Murrey level [2/8]) and 187.50 (Murrey level [0/8]). However, after a breakout of 234.38 (Murrey level [6/8]), growth to ​​250.00 (Murrey level [8/8]) and 265.62 (Murrey level [ 2/8]) may follow.

Technical indicators give a sell signal: Bollinger bands are reversing downwards, and the MACD histogram is increasing in the negative zone. Stochastic is directed upward, not excluding a limited correction.

Resistance levels: 234.38, 250.00, 265.62.

Support levels: 218.75, 203.12, 187.50.

Trading tips

Short positions may be opened from 215.00, with the targets at 203.12, 187.50, and stop loss 223.30. Implementation period: 5–7 days.

Long positions may be opened above 234.38, with the targets at 250.00, 265.62, and stop loss 224.60.