Last month, I wrote a post about Tesla Motors (NASDAQ:TSLA) bull market trend line. More specifically, I highlighted how Tesla’s stock price was testing its post-2012 rising trend line. Today, the stock is still clinging to its trend line… perhaps for dear life.
Considering that Tesla was once the the tech darling of the stock market, this is an interesting development to watch.
Here’s a quote from my post last month (it provides a pretty good summary of this key Tesla stock trend line):
Using a log scale, a trend line drawn from the October 2012 launch point near $27 and connecting the February 2016 low near $141 would place it currently in the $193 range. Yesterday, TSLA made a low of $193.45, testing 6-month lows and trend line support.
After a brief bounce, Tesla’s stock price has come back down to test (and briefly break) its trend line. Keep in mind that since the trend line is “rising”, it’s currently higher now. As well, the stock broke its September lows (hitting 192 last week).
The bottom line: The longer it remains sub-$200, the higher the likelihood of a break down below this key Tesla stock trend line. Bulls need to see a big upside thrust in price… and soon.
Thanks for reading.
Twitter: @JLyonsFundMgmt
The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
