|premium|

Tesla (TSLA) Stock Price and Forecast: Tesla stages a strong rebound as Model S Plaid rolls out

  • Tesla shares pop 2% on Thursday to $610.
  • TSLA shares boosted as the company says it will comply with new Chinese data security rules.
  • TSLA rolls out the 1,020 horsepower Model S Plaid, live-streamed on Thursday night.

TSLA shares caught a bid on Friday as the company rolled out the powerful 1,020 horsepower Model S Plaid at a live-streamed event on Thursday night from its Freemont factory in California. Elon Musk tweeted, "I love the yoke". Presumably, this referred to the car and not his eggs for breakfast. The vehicle is impressive with a top speed of 200 miles per hour and takes just 15 minutes to charge up to a 187-mile range. Tesla has canceled the Model S Plaid + as it believes the Plaid version is "just so good," according to Elon Musk. Separately on Thursday, Tesla said it will comply with all of China's new data security rules to protect customer rights, according to Reuters. 

Tesla stock forecast

Tesla shares staged a strongly bullish move on Thursday, closing up nearly two percent. Notably, the point of control was near the top of the day's range. The point of control is based on volume and shows the price level where the most volume occurred. Volume is a powerful indicator of sentiment and what the point of control attempts to show is where the fairest perceived price level was in a given time period. In the case of Tesla (TSLA), being at the top of the day's range shows even bears accepted the price going higher on Thursday. No indicator is perfect, but it attempts to show the most important price levels.

Since December we can see from the chart below the point of control is at $672, which corresponds to our stated resistance at $667. We can also see clearly from the volume profile on the right where the majority of volume has taken place in this time period and why the consolidation 2 zone is exactly that – a consolidation zone. The most volume has taken place at this price range, so it is deemed the fairest price zone. The market will generally move from one consolidation zone to a new consolidation zone. Some catalyst persuaded either bulls or bears that prices are not fair, and they are then pushed to a new zone where more investors or traders see relative value or fairness.

Again from below, we can see the significance of the $539 level. Below this, there is little price discovery or volume until we reach the bear target zone. This means a break of $539 is more likely to accelerate. This may make a useful options play as a sharp drop will see a volatility spike making puts more expensive. $539 and $667 remain the key pivot points, but with Thursday's strong performance, the point of control being to the top of the daily range and TSLA retaking the 9-day moving average give more credence to the bullish case. As ever this is a battle zone or fair zone with the 200-day moving average further adding to the importance. A breakout will come eventually. 

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to PremiumSign In

Author

Ivan Brian

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.

More from Ivan Brian
Share:

Editor's Picks

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary. 

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.