Tesla Stock Analysis: Is TSLA Oversold and Ready for a Bounce?

Tesla's stock ($TSLA) is showing signs of being oversold on the daily chart, raising questions about whether a short-term rebound is on the horizon. As of today, Tesla shares are down 7% in daily trading, currently priced at $326.54 per share. The stock has now dropped over 33% since reaching its all-time high in December last year.

One key technical signal to watch is Tesla's 100-day moving average (100MA), which the stock has now fallen below. If it remains under this level by the end of the trading week, it could set the tone for the stock’s direction for the rest of the month.

Technical Indicators Suggest Oversold Conditions

Multiple technical indicators suggest that Tesla's stock might be oversold in the short term:

• Relative Strength Index (RSI)
• Stochastic Oscillator
• Williams %R

With all three indicators in oversold territory, investors may look for a potential bounce as buyers step in to support the stock. If the price consolidates and rebounds, the next resistance level aligns with the upper trendline at approximately $365 per share.

Key Support Levels to Watch

If Tesla fails to hold above the 100MA, a further decline toward the 200-day moving average (200MA) is possible. This support level aligns with the lower trendline of a wedge pattern, which could push Tesla’s price below $270 per share—a 20% drop from current levels.

Will Tesla Stock Recover?

Traders and investors should monitor whether Tesla can hold support levels or break resistance in the coming days. If oversold conditions lead to increased buying interest, a short-term rebound could be in play. However, if the downward trend continues, Tesla may face a deeper correction.

Stay tuned for further analysis as Tesla’s price action unfolds!