Tesla Stock: Bollinger Bands and Price Trend (Last 2 Years)

This chart illustrates the Tesla stock closing price relative to its 20-day Simple Moving Average (SMA) and Bollinger Bands. Bollinger Bands consist of an upper band, a lower band, and a middle band (SMA). They are used to measure market volatility and identify potential overbought or oversold conditions. Prices tend to stay within the bands, and a move outside the bands can signal a strong trend or a potential reversal. Narrowing bands often indicate decreasing volatility, while widening bands suggest increasing volatility.