• TSLA stock exploded again through the $667 resistance level.
  • The electric vehicle sector leader breaks the 100-day moving average.
  • Tesla stock on course to test big $715 resistance level.

Afternoon Update: TSLA stock held on to early gains to close up a satisfying 3.5% on Thursday at $679.82. Wednesday saw the key $635 level accelerated through and Thursday it was the turn of the $667 level. Can Tesla make it three in a row and smash the $715 resistance? If it does it could accelerate sharply as volume is thin aboe. Tune in Friday for more details!

Update: The momentum continues in TSLA stock after yesterday's powerful move. More importantly, Tesla has broken the downtrend line in place since the record highs in January. Expect the move to slow here as the volume profile picks up indicating a more calm ascent. Taking a breather is no bad thing given recent gains have pushed the Relative Strength Index (RSI) and Commodity Channel Index (CCI) close to overbought zones. The next big level to target is $715 as a break here should accelerate with such a thin volume profile. 

Tesla staged an explosive move on Wednesday, powering through the key $635 resistance level we had been repeatedly identifying here at FXStreet. Hopefully, some of you caught the ride. Just to recap, in our piece from before the open yesterday when Tesla was trading in the $620s, we said, "The volume profile to the right of the chart shows how volume drops off above $635 and does not kick in until $660, so a break should accelerate." Take a bow, analyst! Seriously though, it does show the power of volume, or in this case, a lack of it. We are in general herd traders. We do not like to stand out away from the crowd, so volume attracts volume, and a lack of volume usually sees an acceleration to a high volume, equilibrium area.

Tesla key statistics

Market Cap $632 billion
Price/Earnings 624
Price/Sales 21
Price/Book 26
Enterprise Value $753 billion
Gross Margin 21%
Net Margin

3%

Average Wall Street Rating and Price Target Hold, $652

 

Tesla stock forecast

Now the tricky part: where to from here? From the chart below, the move to the top of the trend line is progressing nicely after Wednesday's powerful move. The first target is resistance from $673 to $678, the long-term downward sloping trendline from the January record highs. So a big resistance zone. Breaking that should see a test of the next resistance at $715. But it should be pointed out that the move through this $673-678 area will be a lot harder than the break of $635. The volume profile on the right shows a lot of volume in this zone, so any price appreciation will be tough. Once through, and a break of $715 could again see an acceleration as volume really drops off a cliff above this level. Key support is at $635.40. Some consolidation or inside candles are likely after Wednesday's powerful move, but so long as $635.40 is held the risk-reward remains skewed to further gains.


Like this article? Help us with some feedback by answering this survey:

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD sees cushion around 1.0580 on subdued DXY, Fed Powell in focus

EUR/USD sees cushion around 1.0580 on subdued DXY, Fed Powell in focus

EUR/USD is holding above 1.0570 ahead of ECB Lagarde’s speech. A significant rate hike by the ECB looks likely as the inflation rate has climbed above 8%. The speech from Fed Powell will fade some clouds of uncertainty over the extent of July’s rate hike.

EUR/USD News

GBP/USD approaches 1.2300 as Brexit woes battle softer USD ahead of US Consumer Confidence

GBP/USD approaches 1.2300 as Brexit woes battle softer USD ahead of US Consumer Confidence

GBP/USD grinds higher around the intraday top near 1.2285, following a sluggish start to the week, as buyers cheer the US dollar weakness during Tuesday’s Asian session. The Cable pair ignores recent negative news surrounding Brexit, as well as the UK’s political jitters.

GBP/USD News

Gold: Can bulls defend the critical $1,820 support? Premium

Gold: Can bulls defend the critical $1,820 support?

XAUUSD opened a new week on a positive note but failed to sustain the previous upbeat momentum after running into strong barriers near the $1,842 region. The metal shaved off the early gains and fell nearly $20 from the highest point of the day to settle Monday in the red at $1,823.

Gold News

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect. The ongoing retracement hints at a 60% upswing to $3.50.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures