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Technical Update: Tesla (TSLA)

Shares of Tesla (NASDAQ: TSLA) are plunging after Goldman Sachs (NYSE: GS) analyst Patrick Archambaul placed a price target on the stock of $120 in “a best case scenario”

In the worst case, the analyst placed a value of $58 on the stock–well below its current level of $107.90. The news is causing shares to plummet more than 15 percent as of Tuesday afternoon.

But what do the charts say? This is a stock that has seen more than 273 percent worth of gains in a brief seven-month time period. To say that it’s overbought over the long term is a bit of an understatement.

Even with a 15 percent decline, little technical damage has occurred when looking at the stock on a multi-month time frame. The 50 day moving average is currently at $99.34–well above current levels. The stock is currently sitting at a support level set on June 28. If it holds this level, it may find meaningful support in the coming days. If it breaks down, it will likely challenge the 50 day moving average. After that, major downside levels include $94.47, $92.59, and $87.24.

Prior to today’s move, the stock had reached overbought levels as measured by RSI.

[stock-tools exchange="NASDAQ" symbol="TSLA" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

 

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