Tesla Stock Price and Forecast: TSLA forms a bullish triangle, breakout to test $715 resistance
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UPGRADE- Tesla drops 1.5% on a flat day for markets.
- A small bullish continuation triangle has formed on the daily chart.
- TSLA stock heading for a test of resistance at $715.
Update: Tesla shares are giving up some ground on Tuesday with just over an hour left in the regular session. Tesla stock is trading at $678.13 for a loss of 1.5%. The chart below shows Tesla registering another inside candle (the range is inside the previous days). This is a small continuation trend, a bullish triangle. $715 is the target to accelerate the recent uptrend as above volume thins out.
Monday was a strong day for most names in the tech space, and while Tesla does not quite fit the tech space moniker, it certainly is at the cutting edge of electric vehicle technology and usually tracks the Nasdaq names quite well. Yesterday saw that correlation come to the forefront again as the Nasdaq was the only major index to move strongly higher. The S&P 500 managed a small gain of 0.2%, while the Dow dropped 0.4% and the Russell 2000 index shed 0.8%. The Nasdaq however was the only show in town as a number of the big tech names really caught fire. Facebook surged 4% on a favourable ruling from the federal court against the Fedeal Trade Comission. Tesla also performed admirably despite some potentially negative news. Chinese reports over the weeked had Tesla recalling some 300,000 vehicles due to a software issue – the perfect fuel to ignite bears and push the recent gains back. But the stock completely overlooked the news to surge higher on Monday and close up 2.5% at $688.72.
Wednesday was when the move really kicked off technically. $635 had been a key level we had identified here at FXStreet as the volume profile was thin above this price. All this should have resulted in a price acceleration and this played out perfectly as Tesla stock powered through the level. $667 was the next resistance, and this corresponded with the wedge formation Tesla stock has been in since record highs from January. Tesla again did not disappoint and charged through the level. Friday saw some consolidation and profit-taking, but Monday's strong performance has kept bulls right on track and reenergized or charged them up.
Tesla key statistics
| Market Cap | $663 billion |
| Price/Earnings | 672 |
| Price/Sales | 23 |
| Price/Book | 29 |
| Enterprise Value | $753 billion |
| Gross Margin | 21% |
| Net Margin |
3% |
| Average Wall Street Rating and Price Target | Hold, $657 |
Tesla stock forecast
News that Tesla is recalling up to 300,000 Chinese-made and imported Model 3 and Model Y cars hit the tape on Saturday. Chinese regulators said the move is linked to assisted driving, which drivers can activate accidentally. The recall is for software and is remote, according to Reuters, so may not be as big an issue as the headlines would lead one to believe. The intraday chart above shows a little resistance just below the psychological $700 level with a potential triple top. But an intraday resistance is not as strong. This is due to the heavy volume profile we previously identified in this $670-715 zone. Any push higher will be more gradual. Once above $715 though the volume profile thins out quickly, meaning a move to $780 should not meet too much resistance.
The risk-reward is skewed to the upside, but the worrying thing to look out for is the opening gap from Wednesday to Thursday, $657 to $667. Markets love to fill a gap. This would though make a nice entry point for a fresh long as it would remain above the 9-day moving average and therefore not do too much damage to the bullish trend in place. $635 holds the short to medium term bullish trend in place. A break below is strongly negative.
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- Tesla drops 1.5% on a flat day for markets.
- A small bullish continuation triangle has formed on the daily chart.
- TSLA stock heading for a test of resistance at $715.
Update: Tesla shares are giving up some ground on Tuesday with just over an hour left in the regular session. Tesla stock is trading at $678.13 for a loss of 1.5%. The chart below shows Tesla registering another inside candle (the range is inside the previous days). This is a small continuation trend, a bullish triangle. $715 is the target to accelerate the recent uptrend as above volume thins out.
Monday was a strong day for most names in the tech space, and while Tesla does not quite fit the tech space moniker, it certainly is at the cutting edge of electric vehicle technology and usually tracks the Nasdaq names quite well. Yesterday saw that correlation come to the forefront again as the Nasdaq was the only major index to move strongly higher. The S&P 500 managed a small gain of 0.2%, while the Dow dropped 0.4% and the Russell 2000 index shed 0.8%. The Nasdaq however was the only show in town as a number of the big tech names really caught fire. Facebook surged 4% on a favourable ruling from the federal court against the Fedeal Trade Comission. Tesla also performed admirably despite some potentially negative news. Chinese reports over the weeked had Tesla recalling some 300,000 vehicles due to a software issue – the perfect fuel to ignite bears and push the recent gains back. But the stock completely overlooked the news to surge higher on Monday and close up 2.5% at $688.72.
Wednesday was when the move really kicked off technically. $635 had been a key level we had identified here at FXStreet as the volume profile was thin above this price. All this should have resulted in a price acceleration and this played out perfectly as Tesla stock powered through the level. $667 was the next resistance, and this corresponded with the wedge formation Tesla stock has been in since record highs from January. Tesla again did not disappoint and charged through the level. Friday saw some consolidation and profit-taking, but Monday's strong performance has kept bulls right on track and reenergized or charged them up.
Tesla key statistics
| Market Cap | $663 billion |
| Price/Earnings | 672 |
| Price/Sales | 23 |
| Price/Book | 29 |
| Enterprise Value | $753 billion |
| Gross Margin | 21% |
| Net Margin |
3% |
| Average Wall Street Rating and Price Target | Hold, $657 |
Tesla stock forecast
News that Tesla is recalling up to 300,000 Chinese-made and imported Model 3 and Model Y cars hit the tape on Saturday. Chinese regulators said the move is linked to assisted driving, which drivers can activate accidentally. The recall is for software and is remote, according to Reuters, so may not be as big an issue as the headlines would lead one to believe. The intraday chart above shows a little resistance just below the psychological $700 level with a potential triple top. But an intraday resistance is not as strong. This is due to the heavy volume profile we previously identified in this $670-715 zone. Any push higher will be more gradual. Once above $715 though the volume profile thins out quickly, meaning a move to $780 should not meet too much resistance.
The risk-reward is skewed to the upside, but the worrying thing to look out for is the opening gap from Wednesday to Thursday, $657 to $667. Markets love to fill a gap. This would though make a nice entry point for a fresh long as it would remain above the 9-day moving average and therefore not do too much damage to the bullish trend in place. $635 holds the short to medium term bullish trend in place. A break below is strongly negative.
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