Tesla Inc. (TSLA) stock is shaping up for a pivotal Monday opening after closing last week’s trading session with a significant loss. While Friday’s performance painted a bearish picture, early pre-market activity suggests a potential rebound, creating a tense tug-of-war for traders to watch.
As of the last close on Friday, June 25th, Tesla’s stock price stood at
8.21 (2.35%) for the day. This drop capped a volatile session where the stock failed to hold its early gains, signaling strong selling pressure into the close. However, a glimmer of optimism has appeared in pre-market trading, where the stock is indicated at $343.40, up $2.93 (0.86%).
Here is a breakdown of the critical data for traders heading into the new week.
Friday’s Trading Session: A Bearish Signal
A closer look at the 1-day chart reveals a classic intraday reversal. Tesla stock opened strong at $356.17, near its session high of $356.26. This was well above the previous close of
340.44**.
Closing at the bottom of the daily range is typically a bearish indicator, suggesting that momentum was firmly with the sellers at the end of the day.
The Pre-Market Rebound: A Glimmer of Hope?
The most crucial piece of information for Monday’s open is the positive pre-market activity. The early jump to the $343 level indicates that buyers are stepping in at these lower prices, potentially seeing the sell-off as an overreaction or a buying opportunity. This bullish pre-market sentiment could lead to a higher opening price on Monday morning.
Key Levels and Data for Traders to Watch:
To navigate Monday’s session, traders should be acutely aware of the following technical levels and data points from the chart:
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Immediate Support: The primary support level to watch is Friday’s low of $340.44. A break below this level could signal a continuation of the downtrend.
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Initial Resistance: The first hurdle for bulls will be to sustain a price above the pre-market high around
348.68.
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Broader Context: The stock is trading significantly off its 52-week high of
182.00. This places the current price in the upper half of its yearly range.
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Valuation: The P/E ratio is high at 187.39, which is common for a high-growth stock like Tesla but indicates that high expectations are already priced in.
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Dividends: As noted, Tesla does not pay a dividend, meaning investors are focused purely on capital appreciation.
Outlook for Monday: Will it be right to invest?
Monday’s session is poised to be a battle between Friday’s bearish momentum and the bullish sentiment from pre-market trading.
For a potential investment or trade on Monday:
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Watch the Open: The most telling sign will be the market’s opening price action. If the stock opens above $343.40 and holds, it could be a positive sign for a day-trade to the upside, targeting the $348 resistance level.
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Beware of a “Gap and Fade”: If the stock opens higher but immediately starts selling off and breaks below Friday’s low ($340.44), it would be a very bearish signal, suggesting the pre-market optimism was short-lived.
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Wait for Confirmation: For more cautious investors, it may be prudent to wait for the stock to establish a clear trend. A decisive close above $348.68 would be a stronger confirmation that the bulls are back in control.
In conclusion, while Friday’s close was weak, the positive pre-market activity offers hope for a rebound. Traders should remain cautious, respect the key support and resistance levels, and wait for the market to confirm its direction before making any significant investment decisions.
Disclaimer: This article is for informational purposes only and is based on the analysis of the provided image. It does not constitute financial advice. All stock market trading involves risk, and you should consult with a qualified financial advisor before making any investment decisions.
