Tesla Inc. TSLA traded flat premarket Tuesday after forming a leggy doji chandelier on Monday, indicating a rebound could be on the horizon.
The stock has suffered eight straight bearish red candles and is down over 21% since the start of trading on Sept. 29.
On Monday, MorganStanley analyst Adam Jonas maintained an overweight rating on Tesla and lowered the price target to $350 from $383. The new price target suggests about 57% upside potential for the stock.
See also: Tesla shares fall on supply disruptions, supply concerns
Despite a lack of analyst estimates for third-quarter deliveries, Tesla launched a record number of vehicles and gained ground in Germany in September.
The tech giant’s Model Y became the best-selling electric vehicle in Germany this month, taking the top spot from Volkswagen.
However, Tesla’s achievements haven’t helped the stock, which has been dragged down by broader markets that have endured a long-term bear market for most of 2022.
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The Tesla Chart: Tesla is trading in a downtrend, with the recent lower high printed at $289 on September 28th and the recent confirmed lower low at the $270.31 mark on September 26th. The stock hasn’t rallied to make its next lower high in eight trading days, making a recovery likely over the next day or two.
- On Monday, Tesla printed its leggy doji candlestick after falling lower to test a lower ascending trendline of a triangle pattern. The trend line has been holding as support since March 5, 2021, making it likely that the trend line will continue to hold.
- If Tesla breaks down from the lower trendline of the triangle pattern on above-average volume, it could indicate that a much larger move to the downside is on the horizon. If the stock bounces out of the range on Tuesday or Wednesday, a short-term bull cycle becomes the most likely scenario.
