- Tesla remains mired in a range trade.
- TSLA shares rotate around the 200-day moving average.
- The latest rally looks to be in jeopardy despite positive delivery news.
Tesla continues to exhibit modest volatility and, dare it to be said, a boring range compared to the new meme stocks on the block. Tesla had shown some good form in getting back above $600 last week and trying to push on but struggled with some heavy selling. Tuesday's price action was modest but given the expected tailwind of some strong Chinese delivery data, the negative close was disappointing. Lordstown Motors (RIDE) certainly did not help the sector, but Tesla is far away from that end of the spectrum and really can afford to discount any possible read-across bears may have been trying to spin. There is continued read-accross from legacy automakers switching to electric, and this news flow is likely to continue as the pace of electric adoption increases.
Tesla stock forecast
The first resistance target is at $635.40, the late May high. $655 above that is the top of the relatively formative uptrend channel. $667 is the real prize bulls seek as this would end the series of lower highs and lows. $539 is key for bears as a break is likely to accelerate a move below $500. There is little price discovery from $539 to $465 as shown by the Consolidation 1 area. Tesla moved sharply out of this zone late in 2020.
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