Tesla’s stock bounces sharply after brief early dip below key technical level

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Shares of Tesla Inc. surging 3.2% in afternoon trading to $392.54, as they bounced sharply following a brief intraday dip below a key technical level. The stock was down as much as 7.6% to its intraday low of $351.30, which was hit soon after the open, before recovering. At the intraday low, the stock traded below the 50-day moving average, which currently extends to $364.18, for the first time since April 13. By 9:47 a.m. Eastern, the stock had climbed back above the 50-day, according to FactSet data, and hasn’t been back there since. From the intraday low, the stock has now bounced 12%. The stock had previously come as close as 25 cents to the 50-day moving average without falling below it on Sept. 8, when it hit an intraday low of $329.88 versus a 50-day at the time of $329.63. Many technicians on Wall Street use the 50-day moving average line has a guide to the intermediate-term trend, so they suggest a stock’s outlook remains positive as long as it holds above that line. Tesla’s stock has now run up 369% year to date, while the S&P 500 has ticked up 0.6%.
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