“Death Cross” on Tesla: the scholarship draws the ultimate warning before the fall
It is now acted: Tesla has just met a symbolic threshold that technical analysts fear as a cat cold water. Since Tuesday, the action of the electric vehicle manufacturer has posted a Death Cross : a crossing of curves which, in the small, felted the world of finance, is a tocsin.
Clearly, its mobile average at 50 days ($ 288.76) went under that at 200 days ($ 290.60), a signal historically associated with prolonged corrections. For investors, this is the kind of movement that is not good … unless you see an opportunity against a background of panic.
Tesla in danger zone: a technical signal makes the stock market vacant
This is not the first time that Tesla has faced this type of configuration. Already in May 2022, in the heart of the monetary tightening cycle linked to galloping inflation, The title had sold up to 54 % Before rebuilding in early 2023. Could history repeat itself? Not impossible, but this time, the context is anything but identical.
From its mid-December summit, flirting with the $ 500, The Tesla action melted by almost 50 %. And it is not only the stock market mechanics that is involved. The market is increasingly worried about the stagnation of sales of electric vehicles, the rise of competing alternatives – Chinese in mind – and above all, of a Tesla brand weakened by a growing, social and media contestation. Elon Musk, for his part, seems more absorbed by his political ambitions and his appearances alongside Donald Trump than by the management of his group.
A downward spiral engaged?
However, we must put into perspective. THE Death Cross is a delay indicator. It acts as the seismograph of an earthquake already passed, not as a prediction. Besides, according to Ari Wald (Oppenheimer & Co.), all the major falls begin with him, but not all lead to a fall. In other words, this crossing could announce a new storm as well as a false alert.
Especially since Tesla is not alone in turmoil. Bitcoin, Nvidia, the Nasdaq 100 and the S&P 500 have all experienced the same rocking recently. All the markets seem to appease to the rhythm of geopolitical, economic … and algorithmic instability.
But at Tesla, where the image weighs as much as the balance sheets, this new black brand falls in the worst time. The post-electoral euphoria has given way to a technical and media wood. And “the oracle” Musk, who once knew how to return a trend with tweets, now seems to struggle to convince even his most faithful supporters.
