Shares of EV maker Tesla (TSLA) were trading significantly lower in early market activity Thursday. The cutting edge company reported earnings numbers last evening and traders were disappointed in their margins and other details. Tesla's earnings story is a "top of the fold" story on the front page of the Wall Street Journal.
Back on April 3, I reviewed the charts of TSLA and wrote that "TSLA is pulling back and it is not clear to me whether this is the start of a pullback/correction or if this is a dip we may want to buy. It could take several more days of price action to know for sure."
Let's review the charts again.
In this daily bar chart of TSLA, below, prices have been correcting lower from the middle of February and have been trading below the declining 50-day moving average line and the declining 200-day moving average line. The trading volume has been decreasing since the end of January which suggests to me that prices are not being pressured by aggressive selling.
The On-Balance-Volume (OBV) line has moved mostly sideways the past two months suggesting more of a balance between aggressive selling and aggressive buying. The trend-following Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line.