Tesla Stock News and Forecast: TSLA trading plan for Thursday

  • Tesla loses more ground on Wednesday as the stock sell-off continues.
  • TSLA though may be stabilizing as losses slow.
  • TSLA stock has not seen a boost from recent stock split.

Tesla (TSLA) lost more ground on Wednesday as the broad stock market sell-off continues. The market had looked to rally at the open, but any enthusiasm was short-lived as equities sold off for the remainder of the session. Tesla at least did manage to stay more or less in line with the major indices, which is a relative outperformance for high beta stocks. Tesla shares have failed to see any bid interest at all following its 3-for-1 stock split last week. This is unfortunate timing to coincide with the Fed flooding the market with a sucker punch.

Tesla stock news

Right now we are all macro traders. For example, take a look at the correlation coefficient for Tesla versus the Nasdaq. It is nearly 1 for 1, so there is very little alpha. Tesla is merely being dragged lower by negative equity sentiment. 

We also note some improved delivery times for Tesla coming out of China for the Model Y. This can be taken both ways. Improved delivery times could mean more sales and higher production. Or is it because demand has dropped? We are not yet sure, but more lockdowns in China certainly look bearish to me. 

Tesla (TSLA) stock forecast

The double top at $314 is still playing out, and the break below $281 is significant. Next key support comes at the 50-day moving average. I have also plotted a new indicator here, the Linear Regression Channel. Simply put, it shows if the price has moved significantly about recent norms and so shows if the price may be oversold or overbought. Right now nothing too serious is showing.

Tesla daily chart

On the intraday chart, there is a nice double bottom at $272/273. This is the short-term pivot as the point of control is just above. It is also near the bottom of the linear regression channel, so looks like a strong support zone. 

Tesla chart, 15-minute

The author is short Tesla.

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