Resistance putting in an appearance on the monthly timeframe
As seen from the monthly timeframe, price action is crossing swords with key resistance at $208.59. We can also see that the unit is testing space just south of channel resistance, taken from the high of $384.29, and the 12- month simple moving average, currently fluctuating around $220.15. Combined, this represents a notable technical ceiling to be mindful of.
Daily chart testing upper bollinger band
Price movement out of the daily timeframe witnessed a close outside of the upper Bollinger Band on Friday (set to 2 standard deviations [calculated through the 20-period simple moving average]). Tesla is trading 6.0% lower at the time of writing after gapping south at the open (note that the company fell a whopping 65.0% last year, erasing the prior year’s upside and about half of 2020’s gains) and appears poised to at least revert back to the Bollinger Band’s mean value of around $187.26.
The Relative Strength Index (RSI) is also on the doorstep of its 50.00 centreline; a move under the aforementioned line would indicate negative momentum (average losses exceeding average gains) and perhaps prompt a (price) drop under the Bollinger Band’s 20-period SMA.
All eyes on H1 trendline support
Having noted the monthly and daily timeframes testing resistance, the H1 trendline support drawn from the low $163.92 will likely be watched. Defending the ascending line is likely to be short-lived, with a break to the downside favoured, targeting support coming in from $187.29.
Adding to the bearish vibe and potential breakout below H1 trendline support, the H1 RSI recently voyaged south of its 50.00 centreline.
This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; losses can exceed your initial payment and you must be able to meet all margin calls as soon as they are made. When trading CFDs you do not own or have any rights to the CFDs underlying assets.
FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products is available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).
Recommended content
Editors’ Picks
AUD/USD on the backfoot, slides below 0.6700
The Australian Dollar registered losses of 0.37% against the US Dollar on Monday, amid rising US Treasury yields that underpinned the Greenback. An upbeat market sentiment could not boost the high-beta Aussie Dollar, which tumbled below the 0.6700 figure. As the Asian session begins, the AUD/USD trades around 0.6668.
EUR/USD eased from 1.0880 on Monday as looming rate differential weighs
EUR/USD eased back from 1.0880 on Monday as talking points from Fed officials weighed on otherwise quiet market flows. Broader markets are keenly anxious for signs of a rate cut from the Fed, but central planners continue to force down expectations with a tricky inflation outlook hobbling the Fed’s options on rate moves.
Gold price retreats after hitting record high at $2,450
Gold price extended its gains on Monday, yet it trades slightly below the all-time high of $2,450 reached during the Asian session amid increasing expectations that major central banks, including the Federal Reserve, might ease policy during 2024.
Digital asset weekly inflows jump over 600% following response to CPI report
Coinshares weekly report of digital asset flows shows that crypto assets witnessed more than a 600% increase in net inflows last week after US Consumer Price Index saw a softer-than-expected inflation increase.
Will the commodity boom last?
The gold and copper price both hit fresh record highs on Monday. The market is sensitive to these two metals because gold is considered an inflation hedge and a safe haven, and because copper is a metal that is linked to global growth.