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Trends & Analysis
News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

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Crude oil declines on profit taking

Asset Watch

Can Tesla get back in the fast lane?

Tuesday, January 23, 2024

While 2024 has been a joyous ride for several Big Tech heavyweights, Tesla has been stuck in reverse. Wells Fargo analyst Colin Langan told clients on Jan. 16 to expect more “growing pains,” as he sees a 13% rise in full-year deliveries versus the company’s 50% target. He wrote:
“There are signs of moderating growth in all three key regions…. There are also macroeconomic headwinds around elevated interest rates and flattening EV adoption.”
But given Tesla’s history of rewarding the optimists when things look their worst, could another rally unfold this earnings season?

The stock is near the low end of its recent range, and key support levels have hit or are near. Tesla ended the Jan. 19 session in its February and March 2023 highs and its August and November 2023 lows. Price support has also collided with Tesla’s rising support line drawn from the April 2023 lows, and the latter could act as another foundation for a reversal.

 

Additionally, Tesla’s daily RSI (the blue line at the bottom) has sunk below 30, which is near the 2023 lows. As a result, the conditions are present for an oversold bounce, and if Tesla can gain some narrative momentum (like a solid earnings print on Jan. 24), it could shift control back in the bulls’ favour.

 

So, is there enough technical fuel to drive Tesla higher, or does the stock need roadside assistance?


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