After the Q2 Deliveries Report, is Tesla stock a buy or sell? Check out the graph

After the Q2 Deliveries Report, is Tesla stock a buy or sell? Check out the graph ...

Get Tesla Inc. Reportstock was down as much as 4.8 percent in Tuesdays trading session, but has recovered some of the losses as investors digest the electric-car manufacturers' reports.

Get General Motors Company Report Was in focus late last week on its delivery results and now its other automakers turn.

Tesla sold 254,695 cars in the second quarter, up 26.7 percent from the same quarter last year, but down about 11.7 percent from the first quarter this year.

Production weighed on supply-chain problems, while a 22-day lockdown-enforced shutdown of a Shanghai plant also harmed.

Some investors are wondering if Tesla is dismantling its wheelsas the Austin automaker is no longer the world's top-selling electric vehicle manufacturer, despite growing fears of a recession.

However, the stock market is still unchanged on the day and is expected to climb further. Let's take a look at the chart.

Tesla Stock is being traded.

Tesla stock's daily chart. provides this chart as a service.

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In late February, the $700 mark was critical support, a level off which Tesla stock erupted when it was tested. Now, the stock is slipping into a tighter and tighter range.

The wedge pattern is illustrated on the chart with blue lines. As of this morning, wedge support continues to buoy the stock.

The moving averages for the 10-day and 21-day moving averages are right nearing $700, causing even more directionless action because neither of the moving average seems to affect the stock price.

Tesla stock may continue to trade in a choppy and sloppy manner until the wedge breaks.

It's possible that the stock market will climb up to wedge resistance and the 50-day moving average, but at that time, it was resistance.

On the downside, wedge support is critical for bulls. If it breaks, it significantly increases the odds that Tesla stock will decline. Specifically, the $620 to $625 area will be on the table.

Tesla's 2022 low is $620.57, and it will be in play if the company fails to maintain its current support.

Below that, one might put $540 to $550 in play, followed by a major breakout level near $500.

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