Shares of Tesla, Inc. (NASDAQ:TSLA) have been moving higher. But if they reach the $765 level, there’s a good chance they run into resistance again. That could keep a top on the price.
As you can see on the following chart, a large number of investors bought TSLA in May when $765 was support. Now the price is lower. Many of the investors who bought then, and still hold it now, regret their decision. A number of them decide to sell, but they don’t want to take a loss.
As a result, they place their sell orders at the same price they bought at. If there is a large amount of these sell orders, it will create resistance at a level that has previously been support. This could be the case here with TSLA.
To learn more about trading, check out the new Benzinga Trading School.
