Tesla Leveraged ETFs Hit A Death Cross: Is A Short Squeeze Next For TSLL, TSLR?

Core Viewpoint - Tesla's stock has experienced significant volatility in 2024, leading to a bearish technical indicator known as the Death Cross for its leveraged ETFs, raising questions about future performance and potential buying opportunities [1][2]. Group 1: Stock Performance - Tesla's stock is down over 30% year-to-date and has decreased by 7% in the past month, negatively impacting its leveraged ETFs [2]. - The Direxion Daily TSLA Bull 2X Shares (TSLL) is down nearly 60% year-to-date, while the GraniteShares 2x Long TSLA Daily ETF (TSLR) has declined by almost 59% [2]. Group 2: Technical Indicators - A Death Cross has occurred for both TSLL and TSLR, where the 50-day moving average has fallen below the 200-day moving average, typically indicating a prolonged downside [2]. - Despite the bearish signals, Tesla's stock is currently priced at $266.18, above its 20-day simple moving averages (SMAs), suggesting short-term buying pressure [3]. Group 3: Market Sentiment and Future Outlook - Traders face a dilemma between riding the bearish momentum or betting on a potential turnaround, as Tesla's trend is stagnating but not collapsing [4]. - If Tesla maintains strength above its shorter-term moving averages, a short squeeze in TSLL and TSLR could occur, but if the Death Cross remains valid, further declines may follow [4].