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When we look at Tesla’s chart, or any stock chart, we want to find some certain levels to make our predictions more accurate.
We want to find the highest price that the stock is averaging – the resistance value. We know at this point, it’s a great time to sell to make the most profit.
At the stock’s lowest level, known as support, this is the average lowest price the stock is hitting. At this price point, we want to buy.
Now both of these are averages – which means the stock CAN go higher or lower than these values. But by finding these points first, we can better predict if it’s a good time to buy or sell.
As an example, when Tesla did the 3:1 stock split, the resistance value was around $400 USD, and support was around $250 USD.
In November of 2022, Tesla broke the support value and that transitioned to the new resistance level due to the stock falling.
As of this post date, Tesla is currently trading at less than $120 per share.
Knowing the support and resistance values is SO important. Imagine if you were to buy Tesla at the $250 price and be able to sell it at the $400 price.
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Image and article originally from thebrownreport.com. Read the original article here.