Shares of Tesla Inc.
TSLA,
dropped 3.2% in morning trading Friday to fall below a key chart level that suggests a longer-term downtrend may have started. The stock has tumbled 16.4% amid a three-day losing streak, in the wake of the electric vehicle maker’s disappointing earnings report, and was headed for its worst three-day performance since it slid 20.7% over the three-day stretch that ended Dec. 27, 2022. The stock was on track to close below its 200-day moving average for the first time since May 26; the 200-DMA extended to $214.69 on Friday, The 200-DMA is viewed by many Wall Street chart watchers as a dividing line between longer-term uptrends and downtrends. Friday’s selloff comes after the stock broke below a “triangle” chart pattern on Thursday to warn of further selling pressure. It is currently trading within a important support zone ranging from the 200-DMA and about $208. The stock has now shed TK% over the past three months while the S&P 500
SPX,
has lost 6.5%.
