Tesla shares suffered a pretty sharp drop on Thursday thanks to a mixed earnings report for the fourth quarter in addition to the resignation of its CFO. Shares of Tesla
On the conference call the top brass at Tesla said that they are prioritizing cash preservation over growth after recently completing the acquisition of Solar City
As for the technical traders they will argue that this decline is well over due. For the past 3 months Tesla has been in a straight line up with very little in the way of pullbacks. This is a classic technical pattern that shows a stock's price performance getting too far too fast. From the low set in December to the high set just a few days ago the move was well over 50% in just 72 days. With such an amazing move higher a pullback is a warm welcome for the short term trader that is looking to try and time a bounce.
For the longer term trader you really haven't noticed much growth out of Tesla in the past two years. Shares have been back and forth in a wide range. Technical traders will note that the recent high is also very near the highs of the last 2 years range and many would expect the pullback to continue. If it does not then technical traders will be calling for a breakout to all time highs.