Tesla shares recently made an upside breakout from a long-term descending trend line, indicating that an uptrend might be in order. However, the stock found resistance at $270 and appears to be making a correction.
Applying the Fib tool on the latest breakout move shows that the 50% level lines up with the broken resistance, which might now hold as support. This is also near the 100 SMA, which could hold as a dynamic support zone. Tesla shares are already finding support at the 38.2% level and the 200 SMA.
However, the 100 SMA is below the 200 SMA so the path of least resistance is to the downside. In addition, RSI is still on the move down so Tesla shares could follow suit. Stochastic, on the other hand, is near the oversold area and might turn higher soon, drawing buyers back in the game.
The company reported an adjusted net loss of $75 million or $0.57 per share, which was slightly better than analysts’ expectations of a $0.60 loss per share. This also represents an improvement from the net loss of $282 million or $2.13 a year ago.
Meanwhile, net revenue jumped 45% to $1.6 billion as expected. Management shared its projections to deliver 80,000 to 90,000 vehicles during the year by ramping up production to 20,000 in Q2 while delivering 17,000 units.
However, the company will have to achieve this without the help of two of its top executives. Reports revealed that Production Vice President Greg Reichow and Manufacturing Vice President Josh Ensign will be leaving the company. In any case, CEO Elon Musk remains hopeful due to the 400,000 orders for the Model 3, with the deposits helping the company fund its deficits.
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