Jump to content

Tesla’s share price in decline ahead of earning’s call


Recommended Posts

Tesla’s share price in decline ahead of earning’s call

Despite analysts predicting a great performance this week, the share price continues to look lacklustre.

bg_tesla_motor380176087.jpgSource: Bloomberg
IG Analyst | Publication date: Monday 24 January 2022 

Most analysts believe that Tesla is on a solid footing for its fourth quarter (Q4) 2021 earnings call on January 26th, yet the share price has been in decline since the beginning of the year and is fast approaching its December low at $886.

The company was not only the best-selling electric vehicle brand in Europe in 2021, but also doesn’t seem to have been caught out as badly as other carmakers by the automobile industry's chip shortage during the pandemic. It successfully pivoted its production capabilities whilst opening two new factories and reported record deliveries for its electric vehicles. Yet, since the beginning of January the share price has given back over 20% of last year’s gains, which is why a closer look at the technical picture might be of interest to investors.

Ever since this year’s first day of trading and Tesla’s strong rise to $1212, close to last year’s November peak at $1247, the share price has been drifting lower towards the January 2021 high at $900 and the December trough at $886. A fall through the latter would put the 200-day simple moving average (SMA) at $810 on the cards.

Not too far below this the April 2021 high and 55-week SMA offer potential support at $794 to $786. This support area should withstand the first test, if probed. Should the car company exceed analysts’ expectations during this week’s earnings call, and if this isn’t already priced into its share price, a rise back to the $979 to $1000 region may well ensue. It contains the November and early January lows as well as psychological resistance.

From a technical perspective Tesla would need to extend it gains above the last swing- and mid-January high at $1115 to reignite its uptrend.

24012022_TSLA-Daily.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...