What is Next for Tesla?
Trouble in the Markets
On Tesla's last earnings call, Musk himself stated that the second half of this year would be a difficult half. He also said that if there is a dip, then he thinks investors should buy the dip. Many other companies were forecasting a troubling second half on their earnings calls as well.
The third quarter started off great for Tesla as well as the major indices. But this past month of this quarter has been trouble for most of the market, leaving Tesla relatively flat for this quarter so far.
The Fitch credit downgrade seems to be the negative catalyst that propelled the market into a selling frenzy. A similar sell-off happened in the past when the S&P credit agency downgraded the US economy.
To add to the bearish sentiment, September is one of the worst months for the stock market historicaly. There could very well be more selling before a true rebound happens.
When is it Time to Buy the Dip?
Personally, I believe that there are more legs to the upside with Tesla. As mentioned earlier, Elon himself suggested buying the dip in his companies stock.
So when is it time to buy the dip? You could wait for a positive catalyst to start the buying, like news or some sort of forward-looking statements like you would find in some SEC filings. I like to follow the technical levels to find a possible dip buy opportunity. If a solid positive catalyst appears near a strong technical level, then that would be even better.
Technical outlook for Tesla
If you are bearish on Tesla, and you follow the fibonacci levels, then you were probably expecting this sell-off.
The price action of TSLA is rejecting the 38% Fibonacci retracement level derived from last years bear market downtrend. The 38% Fib level is the strongest support or resistance level before the last investors are squeezed out.
How low can the dip go? Nobody knows for sure. But I will be watching these technical levels for possible price support. The price point I will be watching more closely is the 207.50 level. There are a few strong support levels converging at this price.
The subindicators are signaling very oversold conditions. During a strong downtrend, the price can stay in oversold conditions for some time. But in the very near term, it seems that TSLA is overue for a solid green day.
For the short-term trader, things are looking quite bearish at the moment. But for the long-term buy and hold investor there is nothing to worry about at the moment. The very long-term trend is up, and any sell-off should be taken as a buying opportunity.
So, how long do you think this sell-off will last?
--ATTENTION ALL MOOERS--
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As always, this is not investment advice. Good luck trading. Be careful and be patient. Don't anticipate the market. Rather, participate in the market. Give your investments time. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. And just follow the trends. A trend is your friend.
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72734102 : What percent of Apple Phone market is Tesla’s New PI Phone going to take? Tesla PI Phone release date right before Christmas on December 21, 2023! After researching it is definitely a better Phone and we are holding off buying just to get the better product!
日照西山 : pal
SpyderCallOP 72734102: will his phone service be provided via his starlink satellites? That would be pretty cool...
Clarke : this week!
SpyderCallOP Clarke: I hope so
72734102 SpyderCallOP: Yes! The Tesla Pi phone is to connect off Starlink so even miles from a tower it will function! Even in the middle of an African Desert! How cool
SpyderCallOP 72734102: That's pretty dope
razo2 : the fed is not done increasing rates. from last CPI core reading the rates are still below. we need to see the core under the rates and hold for at least 6 months. unless china real estate have an impact on the banks. my guess biden will just print his way out of this.
SpyderCallOP razo2: right. the bond market has clearly signaled that high rates will be here for longer than previously thought, hence the huge bond sell-off along all maturities, especially the longer maturities. On top of that, the US economy continues to show strength. He has no reason to cut rates at all.
The lagging effect of rates is supposed to be felt 12 to 18 months after the initial hike based on past hiking regimes. If we don't feel the pain soon, then a hike may be warranted.
But I'm no expert so im just waiting to see what happens. we shall see very soon.
razo2 SpyderCallOP: China been dumping bonds. same goes for the Saudi.
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