Tesla shares: Is the rally over? (Video)

so it seems that the stunning rally in Tesla shares may now finally be over certainly for the time being at least the rally uh took the shares to the trillion dollar level prompting some analysts to question the valuation and coming through the downgrade in the stock which is what we saw yesterday coming through uh from uh the uh on the Tesla stock from Goldman Sachs I want to show you the share price chart uh because we've seen some relatively Hefty candles on the way down this blue box represents the move that we've seen since the beginning of the year in fact the year started negatively but we've been up 127 uh since the very first trade in 2023 up to the recent highs that we've seen in the stock uh taking us up to those highs on the 21st of June since then there's been a little bit of air taken out of the tires of Tesla stock yesterday Goldman Sachs cut tested the hold equivalent rating joining Morgan Stanley and Barclays which downgraded the stock last week the brokerages however that they all raised their price targets to reflect momentum in Tesla shares but all those price it's our below where we are I wanted to show you this because I think there's a couple of interesting things happening here we've got this uh coming together of all these moving averages to 5100 and 200 period moving average the 50 has now gone above the 200 period moving average there's this death cross that we've seen in this stock and that coincides as well with what we've got here down at the bottom with the macd the moving average convergence Divergence indicator something that I follow a lot of and when you get this passing in this direction this is on the way down obviously with the blue line coming in now down below the red dotted line which gives us a little bit of a red histogram down here when you see that happen that crossover look what happens to the stock you see declines every time it happens declines uh coming through and every time this is always the case so the big question is is how much further downside is there to go on Tesla stock certainly we've seen a tremendous rally this year as I said it more than doubling in the stock since the beginning of 2023 and people think it's time to sell so that's what they're doing at the moment 240 77 this is an all-session stock 11 at nine o'clock this morning on the IG platform