Tesla Inc (NASDAQ: TSLA) traded higher yesterday, after it hit support at the crossroads of the 590.00 level and the upside support line drawn from the low of June 26th. As long as the stock is trading above that line, we will hold a positive stance.
A clear break above 645.00, marked by the peak of March 26th, could confirm the rebound and may pave the way towards the 715.00 area, marked by the high of March 15th, a break of which would confirm a forthcoming higher high on the daily chart. Investors may then get encouraged to push the action towards the 780.00 zone, defined as a resistance by the inside swing low of January 29th, where another break may see scope for extensions towards the highs of February 2nd and 8th, at around 880.00
Looking at our short-term oscillators, we see that the RSI rebounded from near 30 and is now approaching its 50 line, while the MACD, although negative, lies above its trigger line and points up as well. Both indicators detect slowing downside speed and suggest that the stock may start picking up upside momentum soon. This adds more credence to the idea of seeing more recovery in Tesla.
Now, in order to abandon the bullish case and start examining the case of decent declines, we would like to see a break, not only below the aforementioned upside line, but also below another one drawn from the low March 18th of last year. Such a move, and a break below 465.00 may set the stage for declines towards the 400.00 area, which acted as a support on November 10th and 13th, the break of which may allow the slide to extend towards the low of September 8th, at 330.00.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.