Closing higher for a fourth consecutive week after rebounding from weekly support at $219.86 (a level complemented by the Relative Strength Index recoiling from the 50.00 centreline), Tesla (TSLA) added more than 10.0% last week.
The recent advance has landed the stock within striking distance of weekly trendline resistance, taken from the high of $414.50. In view of the lacklustre response from the last rejection of trendline resistance (July), a break of this level is potentially in the air this week, a move that would help confirm this year’s uptrend from lows of $101.81. The caveat, of course, is that the breach may be short-lived should weekly resistance stand firm at $286.92.
From the daily timeframe, Friday’s retest of resistance-turned-support at $272.58 is an encouraging sign for current buyers in this market. Technically, should the stock remain north of $272.58, drawing higher this week could be seen toward resistance at $284.25, situated near weekly resistance highlighted above at $286.92, which, by extension, implies a break of the weekly timeframe’s trendline resistance.
So, to sum up, chart studies imply a bullish push in the short to medium term until the $285.00ish region, at which point we could see sellers step in and take advantage of the buy-stops tripped north of weekly trendline resistance.
The recent advance has landed the stock within striking distance of weekly trendline resistance, taken from the high of $414.50. In view of the lacklustre response from the last rejection of trendline resistance (July), a break of this level is potentially in the air this week, a move that would help confirm this year’s uptrend from lows of $101.81. The caveat, of course, is that the breach may be short-lived should weekly resistance stand firm at $286.92.
From the daily timeframe, Friday’s retest of resistance-turned-support at $272.58 is an encouraging sign for current buyers in this market. Technically, should the stock remain north of $272.58, drawing higher this week could be seen toward resistance at $284.25, situated near weekly resistance highlighted above at $286.92, which, by extension, implies a break of the weekly timeframe’s trendline resistance.
So, to sum up, chart studies imply a bullish push in the short to medium term until the $285.00ish region, at which point we could see sellers step in and take advantage of the buy-stops tripped north of weekly trendline resistance.