Tesla's Shares Due for Another Reversal
The share price of Tesla remains contained within the boundaries of a massive range, spanning between the 61.8 per cent Fibonacci retracement level at 761.26 and the major support level at 550.00. As the price action comes close to the former, the likelihood of another reversal becomes more significant
A rebound from the upper limit of the range would also entail a reversal from the upper limit of the ascending channel. Hence, bears can look for an opportunity to sell around 760.00.
This is further substantiated by the fact that the ADX has been threading below the 25-point mark since the 5th of April, confirming the ranging sentiment. Meanwhile, the Stochastic RSI indicator is drawing near to its overbought extreme, which confirms the expectations for another upcoming reversal.
The first target is the 38.2 per cent Fibonacci at 675.75 and the second target is the 23.6 per cent Fibonacci at 622.85.
A rebound from the upper limit of the range would also entail a reversal from the upper limit of the ascending channel. Hence, bears can look for an opportunity to sell around 760.00.
This is further substantiated by the fact that the ADX has been threading below the 25-point mark since the 5th of April, confirming the ranging sentiment. Meanwhile, the Stochastic RSI indicator is drawing near to its overbought extreme, which confirms the expectations for another upcoming reversal.
The first target is the 38.2 per cent Fibonacci at 675.75 and the second target is the 23.6 per cent Fibonacci at 622.85.
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