Get ready to buy Tesla? - #ForexKini - Informasi Forex Terkini - #Forex #ForexMalaysia #ForexBrokers

Get ready to buy Tesla?

Tesla remains in investors’ doghouse, as the EV automaker posted weak second-quarter earnings that were plagued by sizable declines in its profit margins. With price cuts being the primary culprit, the company announced on Aug. 13 that new discounts in China would range from 8,000 to 14,000 yuan. As a result, weakening fundamentals have helped push the stock lower since it peaked in mid-July.

However, with substantial support approaching, further weakness could present traders with a great buying opportunity.

Tesla has formed a long-term triangle on the weekly chart, with the bottom part acting as support. If the pattern holds, a bounce could occur near $220, and a rally to the upper trendline could put resistance near $290. Since the recent drawdown has passed the midway point, there may be more upside than downside.

Tesla’s 50-week moving average is another key level, as it ended the coronavirus-induced decline in 2020 and held as support during the 2021 surge to an all-time high. Likewise, it helped halt the sell-off in March 2022, and after a breakdown followed in May, it became resistance from July through September 2022. So with the 50-week MA at $205.99, another ally is not far behind if the $220 level breaks.

Aggressive traders may want to play for a bounce in advance, while more conservative participants may prefer to wait for a reversal before entering a long position.

Either way, will the technicals overpower the fundamentals in the months ahead?

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