Tesla (TSLA) stock is rolling again on Monday. At the session low, shares fell 5.2% and hit new 52-week lows in the process.
While the rest of large-cap tech is holding up well on the day, the group has been under serious selling pressure of late.
In technology, it is similar only to Tesla and Apple (AAPL) are supportive, though the latter is flirting with a move lower given weekend reports of lower iPhone production.
As for Tesla, the stock reacted badly to Q3 delivery results in early October and then reacted badly to earnings on October 19th.
While the stock has managed to rally some over the past five weeks, the broader price action has been dominated by bears.
Shares are now clinging to a key support area as the stock rotates below its October low of $198.59 — giving investors a monthly switch to the downside if the stock can’t recover from that level.
If that’s the case, it could have bulls watching two areas very closely as potential buying opportunities.
When to Buy Tesla Stock
Looking at the chart above, it’s clear that the $200 to $205 area was a huge support zone for Tesla stock.
Shares are cracking below this area now, but if the stock can bounce back and regain this area, then it’s possible for investors to drive Tesla higher in the near term.
However, the biggest opportunity for long-term investors leads with a bigger move to the downside.
Specifically, the $182 to $187 zone resulted in two major bounces for Tesla stock in 2021. The first led to a 44% bounce. The second started the stock’s run to all-time highs, as shares eventually rallied more than 125% from that zone.
If we see a retest of that, aggressive buyers will look for a rebound again. Below that and things get interesting.
The $167.50 area is somewhat attractive as well it was technically a breakout point on the chart. But if we can somehow see a flush at $150, a much more attractive entry could present itself.
Granted, it would have to take place in the coming weeks – otherwise the measures we’re looking at will continue to track higher – but as it stands, the 200-week and 50-month moving averages are between $150 and $160. So does the monthly VWAP measure.
Let’s also not overlook the breakout level of ~$150 from 2020.
While I’m not sure if we’ll see a dive into the $150-$160 range, it’s a zone to watch for long-term investors.