Tesla (TSLA) Stock Underperforms the Broader Market
Analysing Tesla (TSLA) stock chart on 12th December, we:
Identified an ascending channel, with the November price consolidation around $350 (marked by a thick blue line) potentially indicating the median line of the long-term ascending channel (highlighted in blue).
Mentioned that TSLA stock price could move toward the upper boundary of the channel, located near the psychological level of $500. However, the stock remained vulnerable to a pullback with a potential test of the $400 level.
What happened after our analysis?
According to Tesla (TSLA) stock chart:
The price bounced off the upper boundary of the channel, falling short of the psychological $500 level by approximately 2.5%.
On Friday, TSLA stock dropped by more than 3%, making it the worst-performing stock within the S&P 500 index (US SPX 500 mini on FXOpen).
This indicates that buyer momentum may have waned, leading to a correction from overbought levels (as indicated by the RSI) toward fair value, which could align with the channels median line. A test of the $400 level could be relevant.
Meanwhile, Wall Street analysts are pessimistic. According to TipRanks:
Only 13 out of 34 surveyed analysts recommend buying TSLA stock.
The average price target for TSLA is $293.76 by the end of 2025.
Read detailed Analytical Tesla (TSLA) stock price forecasts for 20252030.
Read more: https://fxopen.com/blog/en/oa-tesla-tsla-stock-underperforms-the-broader-market/
Text source: Forex Trading Blog
