Charts suggest it’s ‘time to fade Tesla’ - BTIG
Xiaolu Chu

Teslaâs (NASDAQ:TSLA) stunning run to start 2023 is due for a pause, according to a technical analysis from BTIG.

In a note to clients on Thursday, Chief Market Technician Jonathan Krinsky said that the stockâs over 100% gain from January 6 surprised even some of the most bullish prognosticators and was certainly not foreseen in his charts. However, that surprising run is beginning to test technical indicators and is likely to cool off as he believes âthe rally has largely run its course.â

âWe think the 210-225 range represents a very strong area of resistance. This was the prior lows from February, May, and June 2022,â Krinsky explained. âThere was a lot of volume traded at that level, which suggests there should be a lot of supply.â

He added that a daily RSI touching 77, the highest level since late 2021, also suggests the automakerâs stock could be due for a cool-off. 

âEven if you are bullish on the name, these levels appear overextended,â he concluded. 

Tesla (TSLA) shares continued their run on Thursday despite the word of caution, rising 4.86% in midday trading. The jolt to the upside on Thursday brings the stockâs gains thus far in 2023 to about 96%, rebounding sharply from an over 60% drop in 2022.
Read more on Teslaâs Investor Day scheduled for March 1.