![]() 27, 2022, the stock closed at a more than two-year low of $109.10, It closed slightly lower ($108.10) four days later, that was it.īasically, Tesla stock's current extreme overbought reading doesn't necessarily mean sell now, but it does suggest buyers should beware, as risks increase that a negative fundamental catalyst might have an outsized effect on a tired bulls. When RSI hit an extreme oversold reading of 16.56 on Dec. See also:Tesla short sellers are down billions after stock's winning streak After a 17.2% tumble the next day, the stock resumed its climb to a fresh record on Feb. 4, 2020, the RSI reached an extreme reading of 93.06, after the stock doubled in a month to close at a split-adjusted record at the time of $54.14. The stock dropped 27% over the next six weeks. A software recall, Chief Executive Officer Elon Musk asking investors if he should sell 10% of his stock and director and Elon's brother Kimbal Musk selling stock was just too much for tired bulls. So the stock did continue to rise despite those extreme overbought readings, but not for very long. 4, 2021, the RSI crossed the overbought threshold of 70 on Oct. Nevertheless, the recent extreme RSI readings suggest each gain is taking more out of bulls than they are used to, and history suggests a pullback may be imminent.ĭuring the stock's surge to its record close of $409.97 on Nov. Read: Nvidia stock is the most overbought in 18 months, but that doesn't mean the rally is over. There are also those on Wall Street who believe the ability to become overbought is a sign of underlying strength. Because technically, the stock has been overbought since the RSI crossed above the 70 level on May 30, when the win streak was just 3 days old. Keep in mind that an overbought technical reading doesn't mean the rally is over. Tuesday's RSI reading was the highest since it peaked at a record 94.20 on Nov. The stock's Relative Strength Index, which is a momentum indicator that measures the magnitudes of recent gains against recent losses, rose to 88.46 on Tuesday, according to FactSet data, before slipping to 86.04 on Wednesday. On Wednesday, the stock snapped that streak as it slipped 0.7% to $256.79. The electric vehicle giant's stock (TSLA) broke its previous win-streak record on Monday, then stretched it to 13 straight sessions on Tuesday. Tesla Inc.'s stock chart suggests that bulls may be running out of breath after a record-long win streak, which could spell trouble for the stock in the near term. Compare Standard and Premium Digital here.Īny changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel.RSI momentum indicator reaches highest level since early-November 2021, which could mean trouble for EV maker's stock You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many user’s needs. If you’d like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for $69 per month.įor cost savings, you can change your plan at any time online in the “Settings & Account” section. For a full comparison of Standard and Premium Digital, click here.Ĭhange the plan you will roll onto at any time during your trial by visiting the “Settings & Account” section. ![]() Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Standard Digital includes access to a wealth of global news, analysis and expert opinion. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages.
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