Tesla shares went to the edge, looked over but decided not to jump. | Forexlive

Tesla has been benchmark stocks especially for many traders who love the car, love the technology, love the good and innovation from Elon Musk and therefore consider it a benchmark for innovation, just ask ARKS Cathie Wood.

Of course, Musk does get in trouble too and the selling of Tesla shares to finance his purchase of Twitter, may also be a reason for the weakness. However, there is also the slowing argument due to higher prices for their car, higher rates, slower global economies.

Whatever, the reason the price action and the technicals also tell the story,and that story has been deteriorating.

Today the price of Tesla moved to a low going back to 2021 of $206.22.

That took the price just below a number of swing lows going back in time to July 2021between $206.80 and $208.69 (see the weekly chart above). The price had also fallen below the 50% midpoint of the move up fom the May 2019 low way down near $11.80 (pre split level). That midpint comes in at $213.04.

The low today took the Tesla price to the edge of the cliff. There was a foot over the cliff, but it did not jump.

The price of the stock has bounced with the overall market, and trades at $219.51 currently. It is back above the 50% midpoint as well at $213.04. Phew. New life.

Is the Tesla bounce a reason for the rebound? Probably not, but it may have helped contribute to the rally a bit. It certainly gave the owners new hope, a new life. Time will tell if things get better, or will the price jump below the edge?

/nasdaq