Is It Time To Buy Tesla Stock After Thursday's Bloodbath? Here's What One Long-term Technical Chart Says.
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) shares dropped 12.13% on Thursday after Q4 results but slightly recovered on Friday. The stock is now in the oversold zone according to the 14-day RSI. A long-term technical chart suggests that Tesla has historically bounced back after hitting a long-term upward trendline. Analysts have lowered estimates and price targets post-earnings, but the average target still indicates over 21% upside potential. Near-term catalysts include Q1 delivery updates and news on new EVs, Giga Mexico, or India launch.
January 28, 2024 | 2:31 pm
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Tesla's stock experienced a significant drop but is showing signs of being oversold, which could indicate a potential rebound. Analysts have lowered price targets but still see substantial upside potential.
The stock's oversold status and historical pattern of bouncing back after hitting a long-term trendline suggest a potential short-term price increase. Analysts' average price target supports this view, despite recent reductions. Upcoming updates on deliveries and new projects could also act as positive catalysts.
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