Tesla (TSLA) Stock Price and Forecast: Tesla bounce continues as Bitcoin steadies
- Tesla shares recover as Bitcoin bounces toward $40,000.
- TSLA breaks above the 200-day moving average in a strong move.
- TSLA aiming for $625 as the next resistance target.
Tesla shares have continued to prove the oscillators can prove useful in predicting turning points as the shares registered for a neat 4.4% gain on Monday to close at $606.44. Tesla shares have found support from a confluence of indicators, with the 200-day moving average and the shorter-term, 9-day moving average being a pivot point for the shares on Monday. Tesla pushed through these levels and now finds itself aiming for $625. FXStreet analysis has pointed to a break of $591 being key on Monday, writing "Any break above $591 could accelerate to $625 as there is not much volume despite the steep fall – a form of vacuum."
Tesla stock forecast
The earlier failure to break $539 on May 19 can also be taken as a small victory for bulls on the longer-term horizon, as it will result in a higher low, albeit only marginally. Now Tesla has done the hard part, recapturing the 200-day moving average and retracing back to the consolidation 2 zone. $667 is now the next target for bulls and the trend line at $715 beyond that. Tesla, with its Bitcoin investment, has tied itself to the whims of a volatile asset for now and so Bitcoin will have to be watched closely for guidance toward TSLA shares. It was reported at the weekend that Tesla is now suffering a mark-to-market loss on its Bitcoin investment but that may no longer be the case as Bitcoin retraces to $40,000. Tesla is still in a classic downtrend with a series of lower lows and lower highs. Holding above $539 ends the series of lower lows and breaking $667 will end the series of lower highs. These are the pivot points.
Breaking this $539 level probably sees Tesla slip further to the bear target in the $440 region. Hold and Tesla can stabilize.
| Support | 539 | 500 | 465 | 430 | ||
| Resistance | 625 | 667 | 715 | 781 | 900.40 |
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
