This week in Tesla news, a frequently monitored technical sell signal was triggered, indicating a future downward trend within the Tesla stock market.
On Friday technical analysis and day traders received the sell signal or “death cross” which generally takes place when the longer term 200-day moving average is higher than the shorter-term 50-day moving average. After this signal was triggered Tesla’s stock dropped over 45%. The manufacturing company has not faced a death cross since February of 2019. Indicators of a downward or upward trend help day traders decide whether they should hold or sell the current shares based off.
8 months later, in November of 2019 was Tesla’s last “gold cross” consequently to its death cross, this is an indicator that triggers traders to purchase stock in bulk. Commonly, gold cross takes place when the longer term 200-day moving average is lower than the shorter-term 50-day moving average. Since Tesla’s last gold cross in 2019 the companies’ stocks have sky rocked with an alarming increase of over 900%.
These signals in Tesla stock come based of the increased growth in the manufacturing of electric-powered vehicles from long term competitors. Company’s such as Volkswagen, Mercedes-Benz and General Motors have recently released future plans to launch electric vehicles in the near future. While companies like Ford have already seen much success with the announcement of their lighting version Ford F1-50 and new electric Mach-E Mustangs.
Based on the sporadic downward and upward trend in 2019, Tesla stock owners are praying that the recent death cross in Bitcoin is similar to the Tesla death cross and are just false signals.