Tesla has taken another tumble this week.
The stock has fallen 4% since Monday, extending a sell-off that has dragged shares down nearly 40% from a high set in January. The latest sell-off is tied to the sharp drop in bitcoin – Tesla CEO Elon Musk last week said the company would reverse a decision to allow purchases made with the cryptocurrency, but since clarified it will still hold its investment in the coin.
Tesla could see more pain, warned one chart watcher.
“It broke below trend, and we have to remember, when we analyze stocks such as Tesla, they are prone to overreact — overreact on the upside, as well as overreact on the downside,” said JC O’Hara, chief market technician at MKM…