Tesla Inc.'s stock fell below another key chart level on Wednesday, dipping into a "gap" support zone that could lead to further losses.
The stock (ticker: TSLA) fell as much as 4.6% to an intraday low of $153.21, before paring some losses to be down 3.4% in afternoon trading.
The decline came after the stock broke below the 50-day moving average, a key technical support level. The 50-day moving average is currently at $161.17.
The stock also fell below the 38.2% Fibonacci retracement level of the rally off the January 3 low of $108.10 to the February 14 peak of $214.24. The Fibonacci retracement levels are a series of technical levels that are used by traders to identify potential support and resistance levels.
The stock is now trading in a "gap" support zone. A gap is a price gap that occurs when the price of a stock opens significantly higher or lower than its previous close. Gaps can be caused by a number of factors, including news events, earnings announcements, or changes in investor sentiment.
Gap support zones are areas where the price of a stock has previously traded and is expected to find support. If the stock falls below the gap support zone, it could lead to further losses.
Tesla's stock has been under pressure in recent months amid concerns about rising interest rates, supply chain disruptions, and increased competition in the electric vehicle market.
The stock is down about 30% year to date.