- Tesla shares continue to steadily appreciate, eyeing $667 resistance.
- TSLA breaks 21-day moving average resistance.
- EV maker supported by strong retail sentiment returning to equities.
Tesla shares are continuing to move nice and steadily higher, eschewing the surging retail rally in favour of a more considered move. Understandable, some might think, given it is part of the S&P 500 and now making AMC-style rallies a thing of the past. Even so, TSLA has totally turned around from the bearish tone witnessed earlier in May when it looked like the stock would breach $500. The catalysts were the Fed finally making believers out of the market that it is ahead of the inflation curve and not about to drop the ball (the ball being the market's back). Tech and high growth stocks immediately liked what they heard from the Fed and turned around. Tesla obviously fits into both tech and growth categories and headed north. Perhaps more tellingly were the strong support zones witnessed in a number of big tech names with Apple, Amazon, Facebook and others all having retraced to strong regions of price support. Tesla was no different, retracing back to its 200-day moving average before breaking and trading close to the $539 low from March 5. On May 19 Tesla looked increasingly bearish, having broken clearly from the 200-day moving average, and traded as low as $546.98. However, the momentum oscillators, the Relative Strength Index (RSI), Commodity Channel Index (CCI) and the Williams %R, all combined for a strongly oversold signal. No indicator is perfect, but a combination of indicators giving the same signal is closer to perfect, and Tesla duly turned itself around. From this $546 low, Tesla has retraced all the way back to $630 and now has the key $667 resistance in its sights. Tesla has also broken out of its recent down trending channel.
Tesla stock forecast
Where to from here? Well in the short term everything looks rosy for the broad indices in general with the Fed seemingly convincing market participants that all is well, go forth and prosper, and be long, Obi-Wan. Economic data is thin on the ground this week, so bears do not have many arguments to make, and retail momentum is back in equities in a big way, having deserted the crypto ship for now.
Tesla has broken the 9 and 21-day moving averages, always nice guides to the short-term trend. The shares have also, as mentioned, seen nice buy signals from the momentum oscillators, and the Moving Average Convergence Divergence (MACD) has given a crossover buy signal on Thursday. The MACD is notoriously lagging though. What is more interesting is the move toward resistance at $667 and the channel breakout. Volume on the breakout was not high (AMC took all the volume), but the momentum is bullish so long as $591 is below us. This $591 is once again strong support with the 200-day moving average having edged up here. Breaking $667 would end the series of lower highs and lows in evidence since the April highs.
| Support | 625 | 607 9-day MA | 591 key | 539 | 500 |
| Resistance | 667 key | 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.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, 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.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.