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Tesla Plunges 7.67%, Drops Below Daily Support

Yesterday the stock of the electric car maker plunged more than 7%. Is this the beginning of the end for Elon Musk's company?

Report shows that its corporate bonds are also plunging in price. This may spark out a worry among many of its investors.

The above chart shows the daily chart of TSLA. It broke below daily support 2 days ago and yesterday it had a big gap down. However, do note the heavy volume that often accompanies panic selling.

A climactic volume can often hint to a reversal in the stock because too much selling irrationally might cause a stock to bounce back up.

The stock is now below its 200 MA, 50 MA and 20 MA. Not a very good sign if you are looking for a nice trending up stock.

While it plunged in the daily stock chart, a look at the weekly chart tells us that Tesla is dropping to a long term area of support. The stock is also sitting at the weekly 200 MA.

So, you can be certain that some investors will be thinking whether they should buy more of the stock at this area.