Selling Tesla stocks as strong overhead resistance meets weak demand

Tesla's (TSLA) stock is struggling to keep climbing, weighed down by mounting selling pressure. Shares have recently tried to break above resistance at $433 but failed. Right now, a mix of technical and fundamental challenges is holding them back. 

The charts show clear signs that the rally is tired. The Stochastic Indicator is in the red zone at %K=85 and %D=76, which screams "overbought" and warns of a likely pullback after a strong rally. The Chaikin Oscillator is setting off the same alarm bells: it's still positive, however, it has stopped rising while the price has stalled—a classic bearish divergence and Strong Sell signal. For the time being, all eyes are on the $426 level, which is the middle Bollinger Band and a key support zone. If the price drops below that, it could trigger a much steeper decline.

The fundamental story isn't helping matters either. Stock potential seems to be limited in the near future. Tesla is losing ground fast in Europe. Last month, sales cratered by 44–59% in major markets like France, Sweden, and Denmark, proving that even the updated Model Y can't fight off tougher competition and customer skepticism. The only exception was Norway, where the figure tripled because of a tax loophole—a temporary boost, not a real turnaround.

High-profile critics like Michael Burry do nothing to lift spirits. The renowned American investor called the stock "ridiculously overvalued" and warned about shareholder dilution. With the company's core business slowing down, comments like that make any technical weakness in the share price feel much more significant.

Pay attention to the following trading plan:

Sell TSLA at the current price. Place Take profit at $400.00. Set Stop loss at $450.55.

This forecast is valid from December 2 till December 8, 2025.