Article talks about Tesla stock prediction, technical parameters and critical happenings impacting Tesla stock price.

This article focuses on the last few critical happenings about Tesla company and a few technical indicators which can help to predict a move in short term.

Few critical happenings in the last weeks or days

There are many reasons why TESLA stock is down more than 50% from its last high. Below are the last few

1. Twitter acquisition:

Elon Musk the owner of Tesla decided to buy Twitter using debt which should not be a concern for the long term but for the short term it has an impact of less cash and the need to pull cash for other businesses.

After taking Twitter private, a Few customers suspended their advertising on the Twitter platform showing concern over the direction of the platform under new management. This will impact on less cash flow and pull funds from other businesses for paying interest on debts.

2. Production Issue:

Growing China concern due to COVID cases. Lockdowns in the production facility areas have resulted in low total production numbers as compared to earlier months.

These two are key reasons for the price drop in the last few weeks. If These issues persist and will have an impact on prices in the short term.

What do Indicators say about Tesla Stock?

1. Time Charts:

We will look at the Monthly, Weekly, and Daily charts – All are bearish, which indicates that It is bearish. It clearly shows lower highs and lower lows with bearish trend confirmation.

2. Moving Averages:

Monthly, Weekly, Daily trend is bearish. 200 Day, 150 Day, 50 Day, and 9 Day Moving averages clearly show a bearish trend.

3. Support level and Relative Strength:

It shows the stock is testing support around $175. It has picked up twice in the last four-week time frame. The next full candle (Red or Green) will decide the next move in short term. RSI has an upward trend line but is still below 50 which does not confirm a strong move upwards.

Conclusion:

For the Short term, considering the above discussion points it shows a clear downtrend and can drop to the next support level. This is dependent on a bearish or bullish full Candle with no changes in fundamental news.
Long term it is a valuable stock and will give high returns for investors who can afford to be invested for years with no distractions from short-term fluctuations.

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