Tesla share price jumps 5% after strong sell-off. Do you own?

Billionaire Elon Musk's electric vehicle maker, Tesla shares jumped 5 per cent on Wall Street open on Tuesday, March 11, amid a strong sell-off in the US stock markets. 

The benchmark US market indices, like the Dow Jones Industrial Average, tanked over 1 per cent, trading at 41,448.33 points in the early market session as of 10:30 a.m. (EDT), compared to 41,911.71 points at the previous US stock market close.

Other indices like the S&P 500 dropped 0.66 per cent to 5,577.63 points, compared to 5,614.56 points at the previous Wall Street close. The Nasdaq Composite index was down 0.36 per cent, trading at 17,407.58 points, compared to 17,468.32 points at the previous close. 

The stock markets in the US are taking a beating in the early market session over investor worries about Donald Trump's tariffs, which could slide the US economy into a downturn, reported the news agency AFP.

Tesla Shares to buy?

After hitting the intraday high of $235.52, Tesla Inc. shares have now eased in the stock market. Tesla shares are now trading 0.15 per cent higher at $222.49 at 10:43 a.m. (EDT) on March 11, compared to $222.15 at the previous US market close.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said that the Tesla stock is showing a bearish pattern on both the monthly and weekly charts. The major support zone is in the range of $170-$190, from where a potential bounce can be anticipated.

“Currently, this stock is exhibiting a continuous bearish pattern on both the monthly and weekly charts, indicating that the selling structure is still intact. However, a major support zone lies in the $170-$190 range, from where a potential bounce can be expected,” said the stock market expert.

“Investors may consider a buy-on-dip strategy near the $170-190 support level, anticipating a reversal towards the $250-270 zone. A stop-loss at $160 (on a weekly closing basis) is advisabletomanagerisk,” said Dongre.

Tesla Inc. (TLSA): Buy at $170-190; Target at $250-270; Stop Loss at $160 (on a weekly closing basis).

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.