This is a look at Tesla stock chart using technical analysis. Is it in an uptrend or downtrend and where are the support and resistance?
Tesla is an important stock for anyone to analyze because of its importance to the major indexes. It is a tech stock that shows consumer discretionary trends.
Being a member of the S&P 500 and Nasdaq 100 makes it even more important. The direction of Tesla's stock price could also give us a hint to the world economy. Electric cars are considered luxury items at the moment, so a rising Tesla is also a rising world economy.
Tesla is now trying to rise again. Previously when Elon Musk tweeted a poll on whether to sell TSLA stock or not, it had a big impact on the stock. I think the market is just trying to find a reason to sell off the stock.
After a rapid rise, any stock could correct very fast because of being overbought. Notice how the MACD also issued a sell signal and no doubt this also help to send the stock lower since many will be looking at the MACD.
Anyway, the selling momentum has slowed down. We know this because the MACD Histogram has curved back up. The stochastics was also oversold and gave a buy signal.
A possible double bottom in the daily chart may be forming. The presence of a doji at the second bottom hinted to a reversal. So far the daily chart seems to hint that the stock may go back up.
Watch the lows of the double bottom. As long as TSLA stays above that area, then I think we will see Tesla eventually going back up.
To help us gauge Tesla better, we need to have a look at the 60 min chart of TSLA. TSLA was able to find support at the rising 60 min 200 MA. So far the stock is still above the 60 min 200 MA and this is quite positive for the stock.
TSLA has gone back above the 60 min 20 MA and 50 MA. It had a 60 min bullish cross recently and on Friday it broke out of a 60 min ascending triangle. The top of the triangle will be the immediate support. I think that as long as TSLA stays above the top of this ascending triangle then it is likely to move higher.
If the pattern fails, then we could see a pattern failure that results in Tesla's stock price going lower.
Notice how the ascending triangle sits at a previous high support. That will be the second green area. Watch this support area as well. If it fails then we could see Tesla going lower.
A measured move target from the 60 min 200 MA support to the ascending triangle pattern would bring the stock to its previous all time high. That is something for you to take note of.
I am not sure if you can see it or not but if you look at the entire chart above, you might see the presence of a 60 min cup with handle. The sideways trading that was the ascending triangle is the handle.
If we take the target for the cup with handle, then we could potentially see TSLA making another new all time highs.
Tesla continues to move higher and so far there is no sign of any weakness. It broke out of a 60 min ascending triangle and proceeded to move higher from there.
Yesterday I think it is also forming a type of ascending triangle though not as beautiful as the previous one. But if it breaks out of this ascending triangle, then we just have to continue to be bullish on it.
You know how it works. If it breaks out of the pattern, the top of the pattern will be a new support. Watch the lower trend line as well. If Tesla breaks below it, then we may see some weaknesses.
As long as Tesla remains above the 60 min 20 MA and 50 MA. Stay bullish!
Tesla had a rapid run up but some nasty swings these few days. So far I do not see any weakness in the stock yet. In fact it could be forming a 60 min ascending triangle.
If TSLA breaks out of this triangle then it could potentially go higher. However, if it breaks below the lower trend line this could tell us that the stock could have a deeper pullback.
With the month of November and December good for tech stocks, this could result in a breakout higher. Anyway let the charts tell us what Tesla wants to do. Premarket it is a bit higher so perhaps it will really be breaking higher.
What an impressive run up yesterday for Tesla! Now Tesla is in the Trillion Dollar club and Elon Musk is once again the richest person on earth.
The chart above is the chart of Tesla. Yesterday itself, it went up 12.66% after news came out that Hertz will order 100,000 Tesla for its inventory. If a company can order so many cars, many others will follow suit and it is this impact that causes the price of Tesla to skyrocket.
Elon Musk's net worth also increased along with it and ran up north of $280 Billion. A long way ahead from Jeff Bezos or other billionaires. I think the stock market does teach us one thing. If you use technology to create something that makes the lives of people easier and better, then you will be richly rewarded.
The old highs in Tesla has been smashed and overcomed. Technical analysis will tell you that old resistance will now become new support. Therefore, as long as Tesla stays above the green area, then you can be very very certain that Tesla will continue its long term upwards climb.
Tesla is a new bellwether of the economy. As long as Tesla does well, then this will be very good for the stock market.
Just like the S&P 500, Tesla is now hovering near the old highs. Old highs can often be a resistance area. But I think this will be a small resistance since the prior upmove back in April would have help to absorb some of the supply there.
There is also no immediate drop imminent as the slow grinding uptrend that happened from June to October 2021 would have provided lots of support below. The slow uptrend will also have helped to absorb a lot of supply/resistance from the left.
Tesla just reported earnings and the last time I check the after hours price of Tesla, it is just dropping a bit. The price is about $851 compared to the closing price of $865.80. The stock may or may not drop more when the market opens but one thing you need to take note is to see whether TSLA will drop below the rising daily 20 MA or not.
As long as TSLA stays above the rising daily 20 MA, then I think that the trend will take care of it and help to send it higher and also help it to make new fresh all time highs.
Another thing is TSLA formed a triangle back in the month of September when the market was selling off. Look at the chart and see if you can spot it. The triangle formed at the rising 20 MA. So, if a bullish pattern can form in the worst situation, I think Tesla can handle the resistance on the left and move higher.
Last year I also wrote a piece on TSLA showing that TSLA broke out of a triangle pattern. Back then, the stock was trading at $463. What a long way it has gone. Triangles whether big or small can often point to big gains in a stock.
You might want to read about the piece below.
Let's take a look at the weekly chart of TSLA. If you look at it closely, we can say that Tesla broke out of a weekly ascending triangle type of pattern. The top of the pattern which I have colored in green will be an important area of support.
From a longer term perspective, as long as TSLA stays above this top, then it is likely to continue to move higher in the long term.
The other thing that is positive for TSLA is the fact that it is trading above its rising weekly 20 MA and 50 MA. This is a picture of long term bullish strength. You can see how TSLA was trading above its rising weekly 20 MA and 50 MA for the most part of 2020. Look at the gains it made.
So, as long as TSLA is trading above its rising weekly 20 MA and 50 MA, I would advise you to be bullish long term on TSLA.
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