- Tesla stock continues to search for bullish direction.
- TSLA shares stuck at the 200-day moving average.
- EV auto-maker bounced on the release of Model S Plaid but still rangebound.
Tesla stock recovered last week as some investor enthusiasm finally returned to the stock with the release of the new Model S Plaid at Tesla's Freemont factory. The event was live-streamed. The new vehicle is an impressive high-end machine with a top speed of 200 miles per hour and taking only fifteen minutes to charge up to a range of 187 miles. Tesla share price rallied on the release but has struggled to break away from the 200-day moving average.
Monday saw TSLA open strongly but the stock struggled to push on with the early momentum. A late rally put a slightly better look to the day and TSLA closed at $617.69 up 1.28%.
Tesla stock forecast
A relatively recent uptrend formed from the failure to test the key $539 support level which has been in place since mid-May and is holding Tesla shares. So, the first part was done, that of stopping the falling Tesla share price but the direction is still mostly sideways. Some positives are the recapture of the 9-day moving average. The momentum oscillators, RSI (Relative Strength Index) and CCI (Commodity Channel Index) are trending higher thereby confirming the price move. Moving Average Convergence Divergence MACD) also similarly moving higher with the price.
Above $635 there is a reduction in the volume profile to the right of the chart. This means the area from $635 to $667 does not offer a lot of resistance so breaking $635 should see the move accelerate. Back above $667 the volume profile increases again and as can be seen from the even red and green area of the bars, the volume is pretty evenly distributed between buying and selling. So a strong equilibrium and price acceptance between buyers and sellers. This will make getting through $667 to $700 tricky and may take some time.
The longer-term view in the chart below shows just how strong the support is at the first consolidation zone with the point of control at $416.99, this is the strongest equilibrium area between buyers and sellers. As the volume profile shows us, $539 is key to hold. Below is a relative vacuum of volume which would mean a price break of $530 would likely see an acceleration to $460-$440. For now, the Tesla stock price look more bullish with $635 the first target.
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.