One Thing To Know About Tesla's Stock Right Now

The $700 level is critical for Tesla, Inc. TSLA. There may be support for the stock at this level. If not, shares could make a big move lower.

What Happened: In March and early April, many investors sold their Tesla shares at $700. There were so many sellers at this level that it caused resistance to form. These investors thought they made the correct decision as the stock trended lower after.

But on April 13, shares broke through $700 and traded higher. Now, these investors aren't so sure.

Many decide to buy their shares back, but they will only do so if they can get them for the same price they sold at. This way, they think their mistake will be erased.

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What's Next: If there are enough of these remorseful sellers placing buy orders at their previous sell price, support will form. This is the sign of a healthy market and it could set the stage for another move higher.

But if support doesn’t form, it will be a bearish dynamic. Tesla could fall through this level and make a big move lower.