Seeing that Tesla got hit with the death cross might provide a little thrill in a Tim Walz laughing at Tesla’s declining stock price kinda way. But I have to be honest, as someone who is not fully immersed in the financial markets, the chart pattern reading kinda strikes me as astrology for guys in suits. Like, because the line displays a pendant shape, that means it’s primed to break out? What does that even mean? You might as well say it’s a good time to buy because Mercury is in retrograde.
Anyway, analysts apparently don’t think death crosses are as reliable of an indicator as they are sometimes described by chart readers. According to Reuters, about half the time that a death cross appears, it marks the worst point for the index rather than a harbinger of a steeper decline. Regardless, it’s probably fine to taunt Tesla-maxxers with this news if you want an easy laugh.
The reason the Death Cross is historically the lowest point for stocks is a mixture of people who buy low and survivorship bias.
Given the reason Tesla declined so much, I could very easily see it continuing to spiral. The only recovery is a huge buyup by another ultra wealthy individual, but doing so would mean liquidating some of their own assets, so sucks to suck Elon.