A strong technical buy signal for Tesla

7월 2일

Technical Analysis of Tesla (TSLA)

Tesla (TSLA) has now triggered a strong technical buy signal after breaking up from a large inverted head-shoulders formation.

The buy signal was triggered when the stock broke through the neckline of the formation, around USD 190.00.

The potential for the stock according to this large inverted head-shoulders formation is indicated to be up to around USD 270.00.

The potential of such inverted head-shoulders formations is found by taking the distance from the bottom that constitutes the 'head' in the formation up to the neckline, and then setting the corresponding height from where the breakout from the formation is triggered (cf. red dotted lines marked in the chart to illustrate this).

Incidentally, this coincides here for Tesla (TSLA) also well with both where there will be technical resistance up against the upper trend line in the new rising trend channel, and at previous peaks back in 2023.

The stock has also broken above both the 50-day and yesterday also above the 200-day moving average.

RSI and Stochastics are currently showing an overbought situation for the stock and it may need a little consolidation before further upside.

It is not unusual for a small correction down towards the neckline again before further upswing, after such breaks up from inverted head-shoulders formations.

The overall technical picture for Tesla (TSLA) is at least now very positive, and it indicates that the stock has a potential of up to around USD 270.00 within 1-3 months.

What could change the now very positive technical picture that the Tesla share shows would be if the share were to break down below a now important technical support level around USD 190.00.