---
title: "Stock Of The Day: Did Tesla Reverse?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287074326.md"
description: "Tesla, Inc. (NASDAQ:TSLA) shares opened at $403.16 on May 19, dipped to $393.63, and then reversed to close higher. This reversal formed a 'hammer' pattern on the chart, indicating potential continued upward movement. Support was found around the $402 level, previously a resistance, as sellers repurchased shares after realizing their mistake. Understanding price action is crucial for traders."
datetime: "2026-05-20T13:18:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287074326.md)
  - [en](https://longbridge.com/en/news/287074326.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287074326.md)
---

# Stock Of The Day: Did Tesla Reverse?

**Tesla, Inc.** (NASDAQ:TSLA) shares are moving higher on Wednesday. There is a chance the move continues as a classic ‘hammer' pattern forms on the chart. This is why **Elon Musk**‘s electric vehicle company is the Stock of the Day.

Technical analysis has a dubious reputation, and it's easy to understand why. Many analysts mindlessly look for patterns on charts without understanding the trading dynamics and price action that makes the pattern form.

The names of the patterns aren't important. Understanding why the patterns form is.

Yesterday, Tesla opened at $403.16. During the day, it traded down to $393.63.

Then there was a reversal, and the shares closed higher than they opened. The reversal action appears on the chart as a hammer.

The pattern is a graphical illustration of a powerful intraday reversal. There is a chance the move higher continues.

It isn't a surprise that the shares found support around the $402 level. As you can see on the chart below, this level was a resistance in April.

## Tesla Chart

![Tesla Technical analysis](https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/20091528/one114-1024x607.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Stocks that sell off can find support at prices that had previously been resistance. This common action results from remorseful or aggressive sellers.

Many of the people who sold around $402 thought they made a good move when the price dropped after they did. But when the resistance broke, and the price moved higher, a number of them decided selling was a mistake.

They also decided that if they could eventually do so, they would repurchase their shares at the same price they were sold for. So, when the price dropped back to this level yesterday, they placed buy orders.

There were so many of these orders that it resulted in support forming at the level.

The best traders don't mindlessly try to identify patterns. They try to understand the price action that makes the markets move. This is why they are able to profit.

_Image: Shutterstock_

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## Related News & Research

- [CAP Partners LLC Sells 2,095 Shares of Tesla, Inc. $TSLA](https://longbridge.com/en/news/286379018.md)
- [Mitsubishi UFJ Asset Management UK Ltd. Acquires 5,000 Shares of Tesla, Inc. $TSLA](https://longbridge.com/en/news/287040717.md)
- [Tesla Model Y Gets Rare Price Increase in the U.S.](https://longbridge.com/en/news/286651076.md)
- [Yanni & Associates Investment Advisors LLC Buys Shares of 1,725 Tesla, Inc. $TSLA](https://longbridge.com/en/news/286903213.md)
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