Tesla (TSLA) shares look set to open lower on Monday as Russia Ukraine headlines continue to set the global financial markets narrative. It is hard to avoid the dominance despite what some might say are mildly positive signs for the electric vehicle leader.
Catherine Duddy Wood, an American investor and the founder of Ark Invest, has begun buying the dip in Tesla and took in another $3 million worth of Tesla stock on Friday. Despite this, Tesla shares are looking like they will open some 1% lower on Monday with Tesla currently at $802.83 in Monday’s premarket. This would not be as bad as feared given the significant losses in European markets this morning.
Forecasting on a micro-level is being overpowered by the Russia-Ukraine conflict. Tesla is high beta and considered one of the riskier assets. This has led to a surge in the dollar and gold, traditional safe-havens. Tesla stock has now cleanly broken below the 200-day moving average, a feat it has not managed since June of last year. Back then it was a brief flirtation as it retook the 200-day the very next day. This time the case is different and could lead to long-term pressure on TSLA.
From the weekly chart, we can see breaking and hold below $730 takes Tesla back to the consolidation phase from March and April of last year. This is a neat range between $700 and $600. That may hold Tesla stock for a time, but the bears will target $400 if they can push Tesla out of the support at $600.