Shares of Tesla Inc. (TSLA) rose 4.8% in morning trading, but has pared gains after rising intraday past the first key Fibonacci retracement target. The stock was up as much as 8.9% at its intraday high of $398.99. At that price, the stock had has now run up 20.8% in two days, since plunging 33.7% in five days through Tuesday. At the intraday high, the stock had retraced 40.9% of the decline from the Aug. 31 record close of $498.32 to Tuesday's close of $330.21. Wall Street followers of the Fibonacci ratio of 1.618 ( ), also known as the golden or divine ration given its prevalence in natural systems ( ), believe market retracements follow the ratio. For Tesla's stock, the first key retracement target on a closing basis of the selloff is 38.2% (1 minus 0.618), or $394.43; the second target of 50% is $414.27; and the third more-significant target is 61.8%, or $434.10. Fibonacci followers believe if a retracement doesn't surpass the 61.8% target, the pre-retracement trend remains in force.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 10, 2020 11:16 ET (15:16 GMT)
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