Tesla (TSLA.US) started today’s trading with a bearish price gap. The downward move was triggered by a Reuters report. The news agency reported that U.S. prosecutors are looking into whether the company misled investors and consumers about the capabilities of its electric vehicles. Namely, prosecutors will look into whether Elon Musk lied to investors by suggesting that Tesla cars can drive themselves while neither Tesla’s Autopilot nor fully self-driving system are fully autonomous. If investigators find Tesla guilty of misleading investors, charges of wire fraud or securities fraud could be raised.
Taking a look at the Tesla (TSLA.US) chart on the H1 timeframe, we can see that while the company opened lower today, much of the decline has already been erased. Stocks rebounded from the $170 support zone, marked by previous price reactions and the 200-hour moving average (purple line), and began to recoup losses. A short-term resistance zone to watch is located at the $180 area.
source: xStation5
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