Tesla tries to correct downward trend - Analysis - 01-12-2022

Tesla's stock (TSLA) rallied in the intraday levels after announcing a plan to increase Model Y output in Gigafactory Texas next year, with the company planning to manufacture 75 thousand Model Ys from the factory in the first quarter of 2023, sending the stock 7.67% higher, or 13.87 points, and settling at 194.70, with trading volumes surpassing 109.1 million shares, above 10-day averages of 82.4 million shares.

Technically, the stock is trying to correct the main downward trend in the medium and short terms, with negative pressure from the  50-day SMA, while the RSI reached overbought levels compared to the stock's movements. 

Therefore we expect the stock to return lower, targeting the support of 177.63 anew, provided the resistance of 207.67 holds on.

Expected trend for today: Bearish