Shares of Tesla Inc. (TSLA) dropped 3.2% in morning trading on Friday, slipping below a significant chart level that suggests the start of a longer-term downtrend. The stock has experienced a 16.4% decline over a three-day losing streak, following the disappointing earnings report of the electric vehicle manufacturer. This current performance is set to become Tesla’s worst three-day showing since it fell 20.7% in late December of 2022.
In today’s trading, the stock is expected to close below its 200-day moving average (200-DMA) for the first time since May 26. The 200-DMA is widely recognized among Wall Street chart watchers as a boundary line between longer-term uptrends and downtrends. As of Friday, the 200-DMA stood at $214.69.
Yesterday, the stock broke below a “triangle” chart pattern, providing a warning of additional selling pressure. Currently, Tesla is trading within an important support zone that ranges from the 200-DMA to approximately $208.
Over the past three months, Tesla shares have shed TK% of their value, while the S&P 500 has declined by 6.5% (SPX).
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