Tesla Rebounds From An Upside Support Line

Tesla (NASDAQ:TSLA) traded higher yesterday, after it hit support at the crossroads of the 590.00 level and the upside support line drawn from the low of Jun. 26. As long as the stock is trading above that line, we will hold a positive stance.

A clear break above 645.00, marked by the peak of Mar. 26, could confirm the rebound and may pave the way towards the 715.00 area, marked by the high of Mar. 15, a break of which would confirm a forthcoming higher high on the daily chart. Investors may then get encouraged to push the action towards the 780.00 zone, defined as a resistance by the inside swing low of Jan. 29, where another break may see scope for extensions towards the highs of Feb. 2 and 8, at around 880.00

Looking at our short-term oscillators, we see that the RSI rebounded from near 30 and is now approaching its 50 line, while the MACD, although negative, lies above its trigger line and points up as well. Both indicators detect slowing downside speed and suggest that the stock may start picking up upside momentum soon. This adds more credence to the idea of seeing more recovery in Tesla.

Now, in order to abandon the bullish case and start examining the case of decent declines, we would like to see a break, not only below the aforementioned upside line, but also below another one drawn from the low Mar. 18 of last year. Such a move, and a break below 465.00 may set the stage for declines towards the 400.00 area, which acted as a support on Nov. 10 and 13, the break of which may allow the slide to extend towards the low of Sept. 8, at 330.00.

Tesla stock 4-hour chart technical analysisTesla stock 4-hour chart technical analysisOriginal Article

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