Daily Stock Report

Tesla Motors Inc. - (TSLA) - August 31, 2022

Since dropping out of the green zone of the SIA S&P 100 Index Report back in January, Tesla Motors (TSLA) has twice attempted to return but failed at the boundary between the green zone and the Yellow Neutral Zone. The last relative strength rally attempt failed earlier this month and since then, TSLA has been weakening in the rankings. Yesterday it fell 3 positions to 33rd place. 

A major breakdown appears to be underway in Tesla Motors (TSLA) shares. Over the last few weeks, a bearish Head and Shoulders Top (upper/red circle) has been completed this week with a neckline break. Even worse, the breakdown occurred on a bit of a spike in volumes, indicating a decisively bearish turn in investor sentiment. Breaks of $275.00 or the 50-day average near $266.00 would confirm the start of a new downleg. 

Initial potential downside support appears near $250.00, a round number that coincides with the bottom of a previous gap and a previous breakout point, followed by $225.00 and $210.00. Initial rebound resistance appears in the $290-$300 area.

Over the course of the last nine months, Tesla Motors (TSLA) has staged several large swings in both directions. As time has progressed, it has become increasingly clear that a new downtrend of generally lower highs and lower lows has emerged. Earlier this month, a rally attempt faltered at another lower high near $314.40. Since then, the shares have turned back downward, with a bearish Double Bottom breakdown signaling the start of a new downleg. 

Potential downside support tests appear near $252.85, $229.05 and $211.60, all based on previous column highs and lows, with a horizontal count suggesting a potential test of $220.00. Initial rebound resistance appears near $302.20 based on a 3-box reversal. 

With a bullish SMAX score of 7, TSLA is still exhibiting strength against the asset classes, but its trend has been downward since peaking at 9 a month ago.   

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.