Can Tesla Stock Hold $300?

Tesla, Inc. euphoria dried up in October after the company reported Model 3 production issues and missed third quarter estimates by a wide margin. Analysts believe that the company will run out of cash at the end of 2018 if revenues don’t pick up substantially, putting additional pressure on the troubled rollout. An ill-timed layoff announcement and large shareholder sale have added to growing anxiety, as well as the filing of a class action lawsuit claiming racial discrimination.

The stock broke support at the 200-day exponential moving average (EMA) following the earnings miss, dropping to a six-month low at $292.63. It quickly jumped back above the psychological $300 level and has held that line in the sand for the past eight sessions. However, new resistance between $315 and $320 could attract aggressive selling pressure in the coming days, forcing a retest at the big round number, with a breakdownexposing continued downside into the April breakout above $275. (See also: Tesla Is Biggest Short in North America.)

Tesla has seen a string of bearish news and could break down, offering a buying opportunity at April breakout support near $275. …read more

Read more here: Can Tesla Stock Hold $300?

Category: TSLA

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