• Tesla stock to open lower on disappointing Q4 earnings

• October’s low in focus as oversold conditions detected

Tesla’s stock finished Wednesday’s session on a negative note but remained supported above the 206 level, which has been restricting both upside and downside movements over the past four years.

The latest bearish cycle started after the bulls proved unsuccessful in crossing above the broken support-turned-to-resistance trendline drawn from January 2023, while also failing to breach the long-term resistance trendline from the 2021 record high for the second time at the end of December 2023.

The company’s disappointing Q4 earnings release after the closing bell is now threatening for another negative extension, shifting the focus to October’s low of 193.86. If the bears ignore that floor, the downtrend could stretch aggressively towards the 175.30 region.

On the upside, the bulls will need to jump above the exponential moving averages (EMAs), which lie within the 225-235 region, to reach the long-term descending trendline at 250. Then, they will have to surpass the previous high of 264 in order to meet the constraining ascending line at 273.

According to the RSI and the stochastic oscillator, the market is already sailing within oversold waters. Hence, an upside reversal could soon take place.