TSLA for tomorrow Oct. 1, 2024Current Price Action
TSLA is currently in an ascending wedge pattern, which is typically a bearish reversal signal. However, it’s important to confirm if the breakout is to the upside or downside.
Price is hovering around $261.98, nearing a key resistance level at the top of the wedge, which could signal either a breakout or a rejection.
Support and Resistance Levels
Resistance Levels:
$262.66 - $264.87: This zone is significant resistance, as the price has previously struggled to break through it. A confirmed breakout here could lead to further upside.
$270.00 - $276.00: Should TSLA break above $264.87, the next target would be psychological resistance at $270 and further up to $276.
Support Levels:
$260.46: This is the immediate support, just below the current price, providing short-term strength.
$251.54 - $249.89: Strong support zone where buyers have previously stepped in. A break below this could signal further downside pressure.
$242.51: The last significant support level visible on the chart, marking the lower boundary for potential bearish moves.
Entry and Exit Points
Bullish Entry:
Look for a clean breakout above $264.87 on high volume, which would indicate strength and momentum to the upside. A confirmation here could offer a long entry with a target of $270 or $276.
Bearish Entry:
A rejection around $262.66 - $264.87 would provide a potential shorting opportunity. If the price breaks back down below $260.46, it would confirm the bearish case with a target of $251.54 or $249.89.
A breakdown from the ascending wedge pattern to the downside would further confirm the bearish sentiment, aiming for $242.51.
Exit Points:
Bullish traders can take profits around $270 - $276, but keep an eye on volume and momentum for a continued move higher.
Bearish traders should look to take profits around $251.54 - $249.89, with a more extended target near $242.51 if downward pressure continues.
Suggested Direction
Bullish Case: If Tesla manages to break through the resistance at $264.87, it would suggest bullish momentum, potentially targeting $270 and beyond. Look for strong buying volume to confirm this move.
Bearish Case: A failure to break through the $262.66 - $264.87 resistance zone and a subsequent breakdown below $260.46 would signal a potential reversal, confirming the bearish wedge pattern. A downside move could lead the stock to test support levels at $251.54 or lower.
