Tesla in a free fall - Analysis - 22-11-2022

Tesla's stock (TSLA) tumbled in the intraday levels and closed at two-year lows amid concerns about renewed  Covid 19 restrictions in China, which would hurt demand on cars, while the company announced a series of large recalls in the US for issues with taillights. 

The stock thus tumbled 6.84% in the last session, or 12.32 points, settling at 167.87, with trading volumes surpassing 92.8 million shares, below 10-day averages of 98.6 million shares. 

Technically, the stock breached the pivotal support of 177.63, with negative signals from the RSI, amid the dominance of the downward trend in the medium and short terms, with negative pressure from the 50-day SMA.

Therefore we expect the stock to decline and target the support of 141.80, provided it settles below 177.63.

 Expected trend for today: Bearish