By Senad Karaahmetovic
Tesla (NASDAQ:TSLA) shares continue to hover near multi-month highs as bulls look to stage another assault at the 200 daily moving average that currently trades around 10% relative to the current market price.
Tesla lost about two-thirds of its value from September to January with many investors blaming this plunge on CEO Elon Musk and his controversial Twitter takeover. However, Tesla stock then staged a rally of over 110% on the improving risk sentiment for high-growth stocks.
In the last two weeks, Tesla shares have mostly traded range-bound, stuck between the 200-DMA and 100-DMA. For BTIG analysts, this range could end soon.
Tesla stock “is now showing a momentum rollover based on MACD similar to April and August,” they wrote in a note.
“We think it is still an appropriate time to fade, and would highlight that the 50 DMA is all the way down at $155.”
In addition to the 50-DMA, analysts note that this zone also hosts 50% and 61.8% retracement levels of the rally off the lows, which come in at roughly $160 and $146 per share, respectively.
“It would not be unreasonable to see a re-test of that in the coming weeks, in our view,” they added.
Relative to yesterday’s closing price of $200.86, the above-mentioned zone suggests a downside risk of 20%-30%.
Tesla stock is indicated to open nearly 2% higher today.