Tesla Inc (NASDAQ: TSLA) entered a rally mode on Thursday, but yesterday, it hit resistance at 876, and pulled somewhat back. Overall, the stock continues to trend north as marked by the upside support line drawn from the low of May 15th, and thus, even if we see some further retreat, we will class it as a temporary correction before another positive leg.
The slide may continue for a while more, but investors may jump back into the action from near the 810 territory, marked by the inside swing high of October 12th. The stock could rebound from there, and travel towards its record peak of 900.29, hit on January 25th. If the investors are not willing to stop there either, then a break higher would take the stock into uncharted territory, with the next possible stop in our view the 950 area.
Shifting attention to our short-term oscillators, we see that the RSI lies within its above-70 zone, but turned down recently, while the MACD, although above both its zero and trigger lines, has started topping as well. Both indicators detect strong upside speed, which has started to slow, however. In our view, this supports the notion for some further correction before the next leg north.
The short-term outlook could change to a bearish one upon a break below 720, a support marked by the low of September 20th. This could confirm the break below the aforementioned upside line and may pave the way towards the 668 or 650 levels, marked by the lows of August 19th and 17th. Another break, below 650, may see scope for more declines, perhaps towards the low of July 19th, at 621, or towards the low of June 16th, at 593.
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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.90% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.