TSLA Stock Forecast (BEAR Case) Tesla Stock Prediction using Charts

In this video, I’m going to quickly talk about my concerns regarding Tesla’s stock. In my last video, I mentioned something that was really bothering me about Tesla, and I wanted to cover it in this video. I’m going to focus on the weekly chart, which is easier to decipher.

I have drawn three downtrend lines on the chart. The primary downtrend line has the most touches, which is three. The secondary trend line has two touches, and the tertiary trend line has one touch. These trend lines indicate that we are still in a downtrend.

I have also drawn Fibonacci levels on the chart, which represent significant points of retracement. The levels I drew are the 38.2%, 50%, and 61.8%. Despite Tesla’s recent 100% up move, we still have not cracked the 38.2% level of resistance. This level could be a level of resistance or a turnaround level where the stock turns around and continues the downtrend.

Suppose we breach the 38.2% level of resistance and move up to the 50% retracement level. In that case, this would put us at $258.15. This is a nice move from the bottom, but we have only retraced 50%, which is a common level where the stock can pull back, and it also hits the secondary level of downtrend.

If Tesla were to keep moving up, we have two levels of possible resistance using trend lines and Fibonacci levels, the 50% retracement level and the secondary downtrend line. Tesla could easily make another move up and then follow the downtrend momentum.

The 61.8% Fibonacci level is the most common level of resistance, and it lines up perfectly with the prior levels of resistance. This would bring us to the primary downtrend line. Tesla is still in a downtrend, and even though we have seen a significant move, we need to remember that it is still in a downtrend.

While we can ride Tesla’s stock up and make some money in the meantime, we need to keep in mind that we could turn it around and continue to drift along the trend line, especially if there is weak geopolitical stuff going on. We could be slowly drifting to the downside, which is not exciting for short-term trading.

To get excited, we need to break one of the critical areas, such as the downtrend line. Until then, this move means nothing, and we need to be cautious. Tesla’s stock is still in a downtrend, and it’s important to keep this in mind when making investment decisions.