Tesla (TSLA) Stock Price and Forecast: Tesla struggles as technicals suggest downside
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Tesla remains mired in a range trade.
- TSLA shares rotate around the 200-day moving average.
- The latest rally looks to be in jeopardy despite positive delivery news.
Tesla continues to exhibit modest volatility and, dare it to be said, a boring range compared to the new meme stocks on the block. Tesla had shown some good form in getting back above $600 last week and trying to push on but struggled with some heavy selling. Tuesday's price action was modest but given the expected tailwind of some strong Chinese delivery data, the negative close was disappointing. Lordstown Motors (RIDE) certainly did not help the sector, but Tesla is far away from that end of the spectrum and really can afford to discount any possible read-across bears may have been trying to spin. There is continued read-accross from legacy automakers switching to electric, and this news flow is likely to continue as the pace of electric adoption increases.
Tesla stock forecast
The first resistance target is at $635.40, the late May high. $655 above that is the top of the relatively formative uptrend channel. $667 is the real prize bulls seek as this would end the series of lower highs and lows. $539 is key for bears as a break is likely to accelerate a move below $500. There is little price discovery from $539 to $465 as shown by the Consolidation 1 area. Tesla moved sharply out of this zone late in 2020.
- Tesla remains mired in a range trade.
- TSLA shares rotate around the 200-day moving average.
- The latest rally looks to be in jeopardy despite positive delivery news.
Tesla continues to exhibit modest volatility and, dare it to be said, a boring range compared to the new meme stocks on the block. Tesla had shown some good form in getting back above $600 last week and trying to push on but struggled with some heavy selling. Tuesday's price action was modest but given the expected tailwind of some strong Chinese delivery data, the negative close was disappointing. Lordstown Motors (RIDE) certainly did not help the sector, but Tesla is far away from that end of the spectrum and really can afford to discount any possible read-across bears may have been trying to spin. There is continued read-accross from legacy automakers switching to electric, and this news flow is likely to continue as the pace of electric adoption increases.
Tesla stock forecast
The first resistance target is at $635.40, the late May high. $655 above that is the top of the relatively formative uptrend channel. $667 is the real prize bulls seek as this would end the series of lower highs and lows. $539 is key for bears as a break is likely to accelerate a move below $500. There is little price discovery from $539 to $465 as shown by the Consolidation 1 area. Tesla moved sharply out of this zone late in 2020.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.