TSLA finds buyers again around 512.25
Tesla Inc. (TSLA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TSLA finished Thursday at 528.16 losing $11.09 (-2.06%), notably underperforming the Nasdaq 100 (5.72%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TSLA as at Mar 26, 2020):
Thursday's trading range has been $47.73 (8.72%), that's slightly below the last trading month's daily average range of $56.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSLA.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on February 12th, TSLA actually gained 4.78% on the following trading day.
Prices are trading close to the key technical support level at 492.17 (S1). After having been unable to move lower than 511.11 in the prior session, the market found buyers again around the same price level today at 512.25.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Tesla. Out of 522 times, TSLA closed higher 51.92% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.36% with an average market move of 1.99%.