TESLA MOTORS Watch out for the $165 break!
Analysis published on Thursday, April 20, 2023
It’s the cold shower at Tesla. And for good reason, the American company disappointed with its results for the first quarter of 2023. Sales are certainly up, but earnings per share have contracted. by 23%. On the other hand, the free cash flow to which investors are sensitive is melting like snow in the sun. $441m vs. $2.8bn in Q1 2022. With inventory rising, the price reduction strategy could be evidence of a loss of leadership in electric vehicles.
After suffering at the end of last year at Through the validation of a shoulder-head-shoulder (ETE), prices rallied dramatically off the $110 support and in reaction to a slightly lower weekly RSI. oversold. But much to the chagrin of the bulls, the trend remains clearly bearish from the all-time high at 2:30 p.m. proximity $420. To the point that we would witness a dead cat bounce.
Not only that, ETE’s neckline could serve as a pullback. And in parallel, the MACD below the zero line, would approach a bearish crossover. Not to mention that the RSI could drop below the neutral zone. to 50. Consequently, the validation of these unfavorable signals would open the prospect of a new wave of correction in the continuity of of the downtrend. In which case, the break of the $165 support could be fatal. The bears could & # 39; again carry the thrust in the direction of $110. Under this support, it would be a question of targeting &àgrave; term, $63.
If this pessimistic scenario were to occur, we would fear that it would cause an earthquake in the financial planet. Because precise ;ment, Tesla is one of the most preferred stocks for retail investors.
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