This May be Tesla’s Line in the Sand

01:47 09/08/2018

Tesla Inc. TSLA  has been a slow-motion train wreck. All thanks to un-CEO behavior from Elon Musk. Shares of the stock plunged after video surfaced of him smoking pot on a podcast, capping a volatile month for the CEO. This follows his resurfaced conflict with a British cave explorer, and Musk’s tweet that he was “considering taking Tesla private.” Matters got worse when the company revealed that Chief Accounting Officer, Dave Morton resigned over intense public attention. "Since I joined Tesla on August 6, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations," Morton said, as quoted by CNBC. "As a result, this caused me to reconsider my future." Company HR chief Gaby Toledano is parting ways with the company, too. Even Vice President of Communications, Sarah O’Brien left recently. On top of that, the company is struggling to create a model that’s sustainably profitable. However, despite all of the bad news, the stock has become technically oversold at support. In fact, each time the stock has pulled back to its current price dating back to February 2017, it’s bounced back. If it can hold triple bottom support, we could see a near-term recovery. In addition, the stock is now outside its lower Bollinger Band (2,20). It’s also at a historic low on relative strength (RSI), MACD and Williams’ %R (W%R). Should it bounce from oversold conditions, we could potentially see a bearish gap refill around $340. If it can’t hold support, we could potentially see a test of December 2016 support at $180. Fingers crossed that Musk doesn’t do anything else that would lead to downside.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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