- The Fed steadies the ship with inflation talk, markets take it in stride.
- Tesla stock closes up on the session in a down day.
- TSLA shares attempting to push higher to $635 resistance.
Update June 17: After overcoming the surprisingly hawkish Fed decision, Tesla Inc (NASDAQ: TSLA) has been extending its gains on Thursday, this time rising along with broader stock markets. Shares of Elon Musk's electric vehicle maker are buoyed by the recent presentation of a new model and by growing investment in the sector. Maintaining a safe distance from the round $600 level opens the door to $635, as explained in-depth below.
Tesla closed up on a down day on Wednesday, June 16, always a bullish sign. Markets took the Fed inflation talk in stride with only modest losses. The main indices closed down not much over 0.5%. Tesla closed up nearly 1% at $604.87. The last two weeks of June are historically pretty ugly for US equities, the so-called seasonality effect, so getting through this to the positive month of July is a goal for Tesla shareholders and traders.
TSLA stock forecast
An early bounce from the up-trend channel identified here at FXStreet in early June set the scene for a push higher. Looking at the hourly chart below gives a bit more granularity to the flow data. The bottom support line of the trend channel has worked quite well numerous times. The only negative thing that is possibly concerning is the lack of volume toward the top of the trend channel. The right side of the chart shows the volume profile for each price point. This clearly shows what we have been identifying in the daily chart, namely a break of $635 should accelerate due to a lack of volume-based resistance.
The situation remains relatively stable on the daily chart. $635 is a key level to break and should then see a push to $667. The $539 low is key to hold as below is a lack of volume-based support, meaning a fall may accelerate to the bear target zone. For now though, Tesla stock remains supported by the up trending channel, but the 9-day moving average is above the current share price. Ideally, traders would like to see this change. $539 and $635 remain the pivots.
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.