Selling is not a new feature for TeslaTSLA
stock, but the recent break below a previously established support level is significant. The electric vehicle manufacturer with the peculiar and annoying CEO has been selling off for weeks but today it broke down below a key support level.
That’s a level where buyers had previously jumped in and enjoyed the gains that followed. That sellers now have overcome the buying is significant: something has changed with investor perceptions about the future of the former Nasdaq 100 leader. This break down is a “get me out now” kind of moment.
It’s not just Tesla, of course. Other stocks are going through the same thing. Among them are Baidu, Sirius XM, NIO and Xpeng, all former big names now moving from hot to cold among Wall Street money managers. They may return to favor at some point but who knows when that might be?
Tesla Stock Breaks Below Support Level.
Here’s the daily price chart that Elon Musk is looking at:
The red-dotted line designated the price level of the mid-March low. Tesla gapped down to below it today. The 50-day moving average crossed below the 200-day moving average in early February. The stock trades well below both of the moving averages now and both are down trending.
Here’s the daily price chart for Baidu:
The 50/200-day moving average came way back in October 2023 and it’s been basically down ever since. The China-based internet stock today lost the early March support level. Both of the moving averages are trending downward.
The Sirius XM daily price chart looks like this:
The stock in early April 2024 broke below the late September 2023 price spike down and it continues to drop. The 50-day crossed below the 200-day moving average in late March. From $5.70 in December 2023 to the present $3.15 is quite a slide.
Here is the daily price chart for Nio:
The stock of the Chinese electric vehicle maker has declined in price to below the earlier April support level. It’s been 4 days of selling so far. NIO trades below both down trending 50-day and 200-day moving averages. Note that the company was valued at $15.50 in August and now goes for $3.81.
The Xpeng daily price chart is here:
The red-dotted line signifies the earlier-in-April support level — and the red-circle shows where the price dropped below it. The 50/200-day moving average took place in late January. Xpeng is another China-based EV maker. It traded at $22 as recently as July 2023 and is now priced at $7.15.
More price chart analysis and commentary at johnnavin.substack.com.
