Tesla's Stock Falls 3.27% in Fourth Consecutive Decline, Total 5.95% as Technical Indicators Signal Extended Downtrend

Tesla (TSLA) fell 3.27% in the most recent session, marking its fourth consecutive decline with a cumulative drop of 5.95% over four days. The price action reflects a bearish bias, with multiple technical indicators aligning to reinforce the downward momentum.
Candlestick Theory
The recent candlestick pattern suggests a continuation of the downtrend. A series of lower highs and lower lows, coupled with bearish engulfing patterns, indicates strong selling pressure. Key support levels are forming near $459 (immediate) and $455 (prior consolidation zone), while resistance clusters at $475–$480. A break below $459 could trigger further declines toward $440–$445, with potential for a test of the $430 psychological level.
Moving Average Theory
Short-term moving averages (50-day and 100-day) are below long-term averages (200-day), confirming a bearish bias. The 50-day MA is currently below $460, while the 200-day MA hovers near $450, suggesting a potential cross into bearish territory. The price is trading below all three averages, reinforcing the downtrend. A retest of the 100-day MA ($458) could provide a temporary bounce but may fail to reverse the broader bearish structure.
MACD & KDJ Indicators
The MACD line has crossed below the signal line, signaling bearish momentum, with the histogram showing increasing negative divergence. The KDJ stochastic oscillator is in oversold territory (K at 25, D at 30), but the lack of bullish divergence (price lows not matching oscillator lows) suggests the downtrend may persist. A potential reversal would require a stochastic crossover above 50 and a MACD line crossing above the signal line—scenarios currently lacking in probability.
Bollinger Bands

The price is near the lower Bollinger Band ($459), indicating heightened volatility and exhaustion in the short term. The bands have widened recently, reflecting increased volatility post-breakout. A sustained move below the lower band could signal further weakness, while a rebound above the middle band ($465) might hint at a temporary consolidation phase.
Volume-Price Relationship
Trading volume has surged during the recent declines, validating the bearish momentum. For example, the session ending Dec. 22 saw a 5.95% drop with over 86 million shares traded, suggesting strong distribution. However, the volume has not shown a significant spike in the latest session, which may imply weakening conviction in the downtrend. A divergence between price and volume could foreshadow a near-term reversal.
Relative Strength Index (RSI)
The 14-period RSI is in oversold territory (<30), historically suggesting a potential bounce. However, in a strong downtrend, oversold conditions often fail to reverse the trend and instead indicate exhaustion. A reading below 30 for multiple periods without a price rebound may indicate a “bear trap,” where sellers remain in control. A move above 40 would be necessary to reduce bearish bias.
Fibonacci Retracement
Fibonacci levels drawn from the recent high ($498.83) to the low ($431.11) show key support at 38.2% ($463.50) and 50% ($464.97). The price has already tested the 38.2% level, with the 50% level acting as a critical psychological threshold. A break below 61.8% ($466.44) could accelerate the decline toward $440–$445.

Confluence and Divergences
The strongest confluence exists at $459–$460, where support from candlestick structure, the 50-day MA, and the lower Bollinger Band converge. A breakout below this level would likely trigger Fibonacci and stochastic-driven sell-offs. Conversely, a reversal above $465 (middle Bollinger Band) could initiate a short-term consolidation phase, though the broader bearish trend remains intact. Divergences between the RSI and price action suggest the downtrend may persist despite oversold conditions, a common feature in strong bear markets.
Conclusion
Tesla’s technical profile indicates a continuation of the bearish trend in the near term, with key support levels at $459 and $445. While oversold indicators like RSI and stochastic hint at a potential bounce, the alignment of moving averages, candlestick patterns, and Fibonacci levels favors further downside. Traders should monitor volume for signs of weakening conviction and watch for a decisive break below $459 as a high-probability trigger for extended selling.