Tesla Stock Approaches Key Support Level: Is a Rebound Coming?

Tesla's stock price is nearing a critical technical support zone, sparking interest among traders and investors. Currently, Tesla (TSLA) shares are trading at $288.95, down approximately 40% from their all-time high.

From a technical analysis perspective, several key indicators suggest that Tesla may soon experience buying pressure:

Key Technical Factors to Watch

200-Day Moving Average (200MA)

• The 200MA is now at $278, a level that hasn't been tested since August last year.
• This aligns closely with the previous breakout point ($270), which triggered Tesla's end-of-year rally.

Relative Strength Index (RSI) in Oversold Territory

• The RSI is back in oversold conditions, a level last seen in April 2023 (except for a brief dip in February).
• Historically, this has been a bullish signal, indicating a potential reversal.

Market Pressures & External Factors

Macroeconomic Challenges

• Tesla is facing headwinds from EV sales concerns.
• The recent confirmation of tariffs by Donald Trump on Canada and Mexico, with the EU potentially following, is adding uncertainty.

Elon Musk’s DOGE Involvement

• Investor concerns are rising over Musk’s involvement with Dogecoin (DOGE), which some fear is distracting from Tesla’s core business.

Wall Street's Outlook: Bullish Price Targets

Despite market uncertainty, major financial firms remain bullish on Tesla:

• Morgan Stanley maintains a $430 price target.
• Wedbush reiterates its $550 price target for the next 12 months.

Analysts believe Tesla's focus will shift back to core business growth, with price reductions on select models expected to boost sales in H2 2024. Additionally, the company is ramping up robot production, a key area of expansion leading into 2026.

Conclusion: Is Tesla Setting Up for a Bounce?

With Tesla’s stock approaching a key technical level, a potential rebound may be on the horizon. However, macroeconomic concerns and EV market trends will play a crucial role in determining TSLA’s next move. Investors should keep an eye on upcoming price action, earnings reports, and global tariff developments.