Tesla Inc (TSLA) has been one of the biggest winners in 2020. The stock peaked out on September 1st, 2020 at $502.49 a share. Since that high pivot, the shares have plunged and are now trading around $356.00 a share. Currently, the stock is now trading down near it’s 50-day moving average which is around the $330.00 level. While the 50-day moving average is usually solid support when initially tested it will become a minor support level if price consolidates above the level.
A break below the important 50-day moving average will indicate near term weakness for TSLA shares. The next key support area would be around the $275.00 level. This is where the stock has a gap fill from August 11, 2020. Generally, gap fills will serve as very good support when tested. This key support area is also where the stock reversed a bearish pattern and broke out to new highs. I’ll be watching TSLA stock closely for a long side trade around this major support area.
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