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TSLA May Still Fall Below $ 500 Dragged By Bitcoin

  • Tesla is still heading to dip below $ 500, support at $ 539 is on the way.
  • TSLA shares are likely to suffer from your investment in Bitcoins.
  • TSLA breaks the key level of the 200-day moving average.

The actions of Tesla continue to suffer, facing many headwinds in 2021. Recently, Mixed income reports preoccupied investors with environmental credits and Bitcoin income overshadowing income from EV sales. Disappointing data from China on EV sales has also hit the share price.

Now the perfect storm continues as Tesla’s investment in Bitcoin plunges as the cryptocurrency turns alarmingly towards $ 30,000 and loses 20% at the start of the American session on Wednesday.

Tesla has been in a classic downtrend since late January with a series of lower highs and lows. The $ 780 breakout at the end of February was what really ended any hope that the bulls would make a comeback, as that key support was broken.

Tesla then formed a triangle setup and the break to the downside is another classic bearish chart setup. The goal of a triangle breakout is the height of the triangle, but this is not a particularly clean triangle, so there is uncertainty in the breakout range.

However, other bearish factors remain in play. Tesla broke the trend line support and targeted the 200-day moving average. This is a large and well-observed level for any financial market and it has helped at least slow the decline in Tesla’s stock price. However, Wednesday’s Bitcoin debacle will likely see more pressure on TSLA stocks and the 200-day SMA support is now really broken. Below, $ 539 is firmly in the sights of bears and they are likely to be affected. This was where buyers aggressively entered on March 5 and pushed the TSLA noticeably higher. Volume spiked at this price level as well, making it solid support. If it breaks down, Tesla shares will likely accelerate the move to levels below $ 500.. The reason for the acceleration is clearly evident from the lack of support prices following the move from $ 440 to $ 540 on the way up. Tesla encountered little resistance through this area on the way up, so the same is likely to be the case on the way down. Tesla will head straight for the $ 500 psychological level ahead of a test of the bearish target that we have identified on our chart in the $ 440 region.. This should withstand at least more damage, as it is a solid consolidation area for TSLA stocks.

The MACD and the DMI cross in a bearish sign. The RSI and CCI are indicators that show overbought or oversold conditions. Both indicators noted that Tesla was oversold on May 13. The RSI and CCI did not give strong signals as they barely crossed into oversold territory, but this, combined with the support of the 200-day moving average saw a brief stagnation, but now Bitcoin has helped break any lingering support.

For Tesla to get really optimistic, the work is getting more and more difficult. The first task is to stabilize around $ 539. But it’s a long way to go to get really bullish. The 9-day moving average at $ 597 is now distant, but only above $ 667 can bulls say they are in control again.

Supports: $ 539, $ 500, $ 465, $ 440, and $ 430

Resistors: $ 588 (200 SMA), $ 591, $ 667 (would move bullish), $ 715, $ 781 and $ 900

TSLA daily chart

TSLA

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