Tesla has formed an upward sloping trend channel and is currently at the bottom of the channel.
It's currently at a minor resistance level, so it could break the channel Monday. If it does, look for breach of the 203-205 support zone to confirm an oscillation down to support at 188, forming a triangle chart pattern.
Alternatively, we could bounce off the bottom of the channel toward a stronger resistance zone at 220-223. This resistance zone repulsed Tesla's attempted move higher on June 11-12, so I'd expect a channel break here. The highest I think we go before breaking the channel is resistance at 230.
Tesla is on track to deliver a record number of vehicles in June, which could work as a catalyst in its favor. On the other hand, it has massively negative earnings and horrible analyst ratings headed into a market downturn. Yesterday the US government denied its application for tariff relief, and this has been a year of bad personal publicity for Elon Musk. Personally I wouldn't buy Tesla; I'd just look for the optimal time to short.
It's currently at a minor resistance level, so it could break the channel Monday. If it does, look for breach of the 203-205 support zone to confirm an oscillation down to support at 188, forming a triangle chart pattern.
Alternatively, we could bounce off the bottom of the channel toward a stronger resistance zone at 220-223. This resistance zone repulsed Tesla's attempted move higher on June 11-12, so I'd expect a channel break here. The highest I think we go before breaking the channel is resistance at 230.
Tesla is on track to deliver a record number of vehicles in June, which could work as a catalyst in its favor. On the other hand, it has massively negative earnings and horrible analyst ratings headed into a market downturn. Yesterday the US government denied its application for tariff relief, and this has been a year of bad personal publicity for Elon Musk. Personally I wouldn't buy Tesla; I'd just look for the optimal time to short.
Note
In favor of the bull thesis, Tesla is currently edging above the downward-sloping parallel channel it's occupied for nearly six months. The breakout is a bullish sign, but it would need a candlestick breakout above resistance to convince me this is a new bull run. I don't think the fundamentals favor that kind of move, though Tesla has always been buoyed more by hype than financial health.Note
I got my candlestick breakout, so this is indeed looking like a genuine bull run. We still may see a pullback at about 230.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.