Trade of the Day – Tesla, Inc. (NASDAQ: TSLA) October 13, 2023 253

Trade of the Day

Tesla, Inc. (NASDAQ: TSLA)

(Current Price: US$258.87) – TECHNICAL SELL

Sell stop: US$256.63     Stop loss: US$265.40 (-3.42%)  

Take profit: US$239.00 (+6.87%)    

 

 

 

Tesla has been forming a series of lower highs along a downtrend resistance line, with the weakness reflected in both the Moving Average Convergence Divergence (MACD), and Relative Strength Index (RSI) technical indicators showing decreasing momentum with lower highs formed. Tesla could be forming another potential bearish flag, similar to a previous one formed in September, where a breakdown saw a further pullback in price.

Should the price breakdown of the current potential bearish flag, it could retest the recent swing low support at US$239 formed in late September.

Expected timeline of the trade is 1-4 weeks from the date of report issuance.

Our research team has a fundamental recommendation of “ACCUMULATE” with a target price of US$265.00.

This counter is available for CFD trading and is available on POEMS US Asian Hours, Singapore’s first platform to provide trading of US Equities during Asian Market opening hours (from 9am SGT). For more information, please click here, or scan below:

 

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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