TSLA Stock Price Testing Major Support – May 13, 2014

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TSLA Stock Price Testing Major Support - May 13, 2014

TSLA Stock Price Testing Major Support - May 13, 2014

TSLA stock price has been on a solid uptrend, with a rising trend line connecting the latest lows of price action. Take note however, that the stock has just broken below the 50 SMA (simple moving average), indicating that a bit of selloff might take place.

At the same time though, MACD is moving close to the oversold zone, which means that a a bounce is in the cards. TSLA stock price is testing the longer-term 200 SMA, which has acted as strong support for the share price so far.

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TSLA Stock Price Forecast

A bounce off the 200 SMA could push the TSLA stock price up to the $200.00 major psychological level. A strong break above this area of interest could mean a rally back up to $250.00 in the near future.

On the other hand, a break below the 200 SMA would confirm the potential downtrend. This could lead to a decline to the nearby support at $150.00.

In recent events, Tesla company has been going a lot of challenges so far. The company is battling a ban on direct car sales in Missouri, which might threaten overall revenues and profits for the car company.

In addition, Toyota has ended its deal with Tesla as the former saw more potential in fuel cells. The battery supply deal is set to end this year and Toyota has indicated that it has no plans to extend the contract. Recall that Toyota has invested $50 billion in Tesla, driving TSLA stock price up in the past few months, but is no longer interested to push the deal further.

The path of least resistance for TSLA stock price is to the downside, with more negative company news weighing on share price action in the near term.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com