Tesla Stock Making Dangerous Descent Amid Trading Volatility, Expert Warns

Shares of Elon Musk’s Tesla Inc. TSLA are nearing crucial support levels, indicating potential trading turbulence for investors, Barron’s reported.

Tesla’s stock chart resembles a mountain range with its steep slopes. Notably, the stock recently ascended close to $280 per share, but it now appears to be descending from its peak.

Market technician and CappThesis founder, Frank Cappelleri, expressed worry about the stock potentially cracking the steep upward trendline. He noted that similar trendline breaches triggered swift downside actions thrice in 2023.

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Tesla shares, which surged from around $220 to $280 rapidly, are now on the verge of dipping below $260. If this happens, Cappelleri’s charts suggest the $240 mark could be next.

The recent weakness isn’t associated with the company’s performance, according to John Roque, senior managing director and head of technical strategy at 22V Research. He believes that the market is currently in a correction phase, and Tesla isn’t likely to be unaffected.

As for how much further the stock could decline, Will Tamplin, an analyst at Fairlead Strategies, asserts that Tesla’s key support lies near $218, a price to watch for investors.

On Thursday, Tesla’s stock was down 1.2% in trading activity.

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