Tesla (TSLA) stock price dipped below $1,000 per share on Monday, to its lowest number since October. The EV giant’s stock fell as much as 5% in the morning session.
Investors highlight the stock fell below its 50-day moving avg., which is usually considered a warning sign. Stock price hit an intraday low of $957.21 during the morning trading session. A close under the 50-day moving average might signal more selling ahead.
A “key level is the gap low on 10/25… It coincides the more recent low on 12/6 – $950,” the chief markets strategist at DriveWealth, Jay Woods, told Yahoo Finance.
“If that does not hold as support, I would expect that the gap will fill and possibly rather quickly. A retracement to the 100-day moving avg. at $865 would be the downside technical target you should watch,” he said.
“It did have a 37% correction from Jan. to May. So, a correction isn’t out of the ordinary when you’re looking at TSLA historically,” says Woods.
The stock’s downward trajectory comes at the same time CEO Elon Musk was named the “Times Person of the Year”.
Bianco Research Pres. Jim Bianco has pointed out “TIME Magazine’s Person of the Year has in the past been a good contrarian Indicator. So, consider yourself warned.” Jim Bianco highlights other noteworthy POY, which includes Amazon’s (AMZN) Bezos given the accolade in 1999. The price of the stock had subsequently dived during the dot-com bubble burst.
TIME Magazine’s Person of the Year has historically been a great contrarian Indicator.
Consider yourself warnedhttps://t.co/dbHpKcfu1G
— Jim Bianco biancoresearch.eth (@biancoresearch) December 13, 2021
Musk started selling billions of dollars worth of Tesla stock in Nov., a move that he had telegraphed earlier in the year. The selling put additional pressure on the stock. While recent volatility in the market and concerns about the Federal Reserve taking steps to fight inflation have also been a cause of intraday downward moves.
However, some traders aren’t phased by the sell-off of the stock. Investment advisor Ross Gerber told Yahoo Finance this past month that recent price drops are a great opportunity to buy.
Tesla hit $1 trillion in valuation for its first time ever on Oct. 25th. The stock hit an all-time high of $1,229.91 on Nov. 4.
Author: Scott Dowdy