Tesla share price dropped like rock in last week’s trading. TSLA closed at 667.99 on Friday, down 25.86% from Monday’s opening price. It even went to as low as 611.52 which translates to its lowest level for February.
Just like most stocks on the S&P 500, Tesla share price was hit hard by coronavirus concerns. Losses in the stock price of the electric car-maker may have so been exacerbated by profit-taking after TSLA rallied to 968.70 on February 2. The company is not scheduled to announce vehicle deliveries for Q1 2020 until April. And so, it’s too early to assess if last week’s price action reflects a more significant problem. Tesla is anticipated to deliver more than 500,000 vehicles in 2020 from 368,000 in 2019.
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Tesla Share Price Outlook
On the weekly time frame, we can see that Tesla share price dropped sharply last week. By using the Fibonacci retracement tool and drawing from the low of June 2, 2019 to the high of February 2, 2020, the stock retraced its gains to the 38.2% Fib level. If we see a reversal candle for March, it could mean that Tesla may soon re-test its recent highs at 968.70.
Tesla Share Price, Weekly
On the other hand, it’s worth pointing out that the monthly time frame shows a more bearish setup. The drop in the last week of February translated to the stock’s monthly candle to close as a shooting star. This candlestick is widely considered as a bearish signal because it suggests that there are not enough buyers in the market to sustain the rally. A close below last month’s low at 611.15 could mean that Tesla share price may still fall to the 61.8% Fib level at 477.51. If support does not hold, the next support is at 379.50 where the stock made highs on June 2017 to December 2018.