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by Charalambos Pissouros

Tesla Inc Pulls Back After Hitting Resistance Near 357

Tesla Inc traded lower on Friday, after it hit resistance near 357 on Thursday. The stock is trading above the prior downside resistance line taken from the peak of the 18th of September 2017 and also above an upside support line drawn from the low of the 2nd of April. Therefore, we would consider the medium-term outlook to be somewhat positive.

If the bulls manage to take charge from current levels, then we would expect them to aim for another test near the 357 zone and if they prove strong enough to overcome it, we may see them setting the stage for our next resistance territory of 374, defined by the peak of the 18th of June.

That said, our daily momentum studies suggest that some further retreat may be on the cards. The RSI stands above 50 and also above its upside support line, but it has turned down and could fall below those two lines in the foreseeable future. The MACD, although positive, lies below its trigger line and points down.

However, even if the price continues lower for a while more, as long as it is trading above the aforementioned upside line taken from the low of the 2nd of April, we would still see a decent chance for the bulls to jump in again.

We would like to see a clear and decisive close below 309 before we abandon the bullish case. Such a dip could initially pave the way for the 292 support territory, the break of which could carry more bearish extensions, perhaps towards 276.

TSLADaily 020718

 

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