Tesla Stock Looks To Find Support: Technical Levels To Watch

Tesla Inc. TSLA shares were trending Thursday on StockTwits, and the electric vehicle stock was trading in slightly positive territory at $630.31 at last check. 

Tesla Chart Analysis: The daily Tesla chart above shows the stock may be forming what technical traders call a “bearish triangle” pattern.

Previously, the stock showed resistance near the $500 level before it was able to break above this level and rally further to $900. The stock may show support near this level in the future, as old resistance may turn into new support.

The stock has been trending downward throughout the last few months. This can be shown by connecting the highs on the chart with a straight line and seeing that the slope of the line is negative.

The stock is trading above the 200-day moving average, indicating sentiment about the stock may be bullish. This indicator may also hold as support sometime in the future.

Although the stock is forming what technical traders may call a bearish pattern, stocks don't always follow the pattern.

Bulls would like to see the stock fall to support and begin to bounce before possibly making an entry. Bulls would like to see the stock break above the lowering highs, potentially indicating a reversal in the stock to the bullish side.

Bears would like to see the stock fall to support before eventually breaking below. If bears were able to see some consolidation and the support retest as resistance, the stock may be prone to a stronger move to the bearish side.