After days of selling off, Tesla share prices are now finding support at the long-term 200 SMA (simple moving average) and may be looking to resume the uptrend sooner or later. The price has just bounced close to the technical indicator around $179.00.
At the same time, the oscillator is also suggesting a return of buying pressure as it is turning up from the oversold area. A climb back to the positive levels would suggest that buyers have loaded up on their positions and might take Tesla share prices higher.
Tesla Share Prices Forecast
However, stockholders are becoming increasingly concerned about remarks from competitors. Lu Guanqiu, chairman and founder of China auto-parts conglomerate Wanxiang Group, said: “I’ll put every cent that Wanxiang earns into making electric vehicles. I’ll burn as much cash as it takes to succeed, or until Wanxiang goes bust.”
His company, which bought Fisker hybrid carmaker company, is vowing to resume the production of the Karma plug-in hybrid. This might threaten sales of Tesla in the near future.
Fisker brings a unique edge and owning the company no doubt benefits Wanxiang in terms of gaining access to technologies that would otherwise take them years to develop,” Harry Chen, an automotive analyst with Guotai Junan Securities, told the news service.
Despite that, technical analysts suggest that Tesla share prices are in for more gains and perhaps a test of the previous highs at $260.00. A break below the 200 simple moving average though would hint at a deeper selloff and perhaps a longer-term downtrend.
Before the rallies resume, Tesla share prices must break above the shorter-term SMA and rally past the resistance near $220.00. A strong catalyst or a surge in risk appetite might be enough to trigger more gains for the stock but continued downbeat sentiment for the company could lead it to edge lower.
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