A year ago Tesla’s stock (TSLA) traded at its all time high – over $414.
It reached that price area while respecting its long term daily moving average support lines: the 227 SMA (body) and the 234 SMA (wick).
In February 2022, TSLA broke below these support lines. When that happened, it warranted a close watch for a direction change. And a direction change indeed occurred:
Today, TSLA closed the session just about 3.5% above its best respected weekly moving average support lines, which registered in June 2019:
- Weekly body support: 368 EMA @ $132.77
- Weekly wick support: 374 EMA @ $131.36
Do market participants wait around this daily support area to buy Tesla’s stock? Or will they sit out and watch the price slide down towards the round $100 marker?