Shares of Tesla Inc (NASDAQ:TSLA) took a hit on Tuesday, and there could be more pain to come if prices hit a critical level. That’s the take from one equity strategist that has outlined what he sees as a “line in the sand” for Tesla investors.
CNBC passes along the strategists’ take on Tesla share prices.
While a few key levels are holding the stock together, any more pain might push investors to their breaking point, according to one market watcher.
“It has two key support levels that we’re watching,” Matt Maley, equity strategist at Miller Tabak, told CNBC’s “Trading Nation” on Tuesday. “First was the $285 level. That had been the double-top high from 2014 and 2015 and once it got above that, that became new support.”
There has been a good amount of volatility in Tesla shares over recent weeks. A number of negative headlines hasn’t helped matters, and there’s a general sense of leeriness surrounding the stock at the moment. For Maley, there’s danger ahead if a key support level is breached.
“Now that we’re breaking below that, that’s creating some problems, so we got to watch out. It could be a quick move back down to its $250 level. That was the low back in March,” he said. “That’s the kind of line in the sand — investors are going to get really concerned. A lot of the momentum money is going to leave the stock if you break below that level.”
Tesla Inc shares fell $1.18 (-0.42%) in premarket trading Wednesday. Year-to-date, TSLA has declined -9.30%, versus a 1.78% rise in the benchmark S&P 500 index during the same period.