Technical Analyst, Saxo Bank
Summary: Tesla is set to open higher after GM deal. Uptrend will become even more stretched and the share price in overbought territory with a higher close.
However, Tesla could test strong resistance and gap area 254.50-265.25 before a likely correction. Medium-term higher Tesla prices are in the cards
Tesla closed yesterday just below the resistance at around 237.40.
However, an agreement with GM made public after the Exchanged closed regarding charging stations send the share price higher in after-hours trading.
Pre-market Tesla is indicated to open around 250 as indicated on the daily chart.
That is just below next key resistance at 254.50. 254.50 is also the lower level of the Gap area back from October 2022. The upper level is 265.25.
That area is a strong resistance area where from a correction could be seen. The RSI already above 80 as of close yesterday there by in overbought territory, will be even more in to overbought territory with a higher share price close today Friday.
That is indicating the uptrend is quite stretched short-term supporting the view of a correction in the coming week.
However, it would require a close below 195.10 to demolish the bullish trend short-term and put it on pause.
Medium-term weekly chart: If Tesla closes at current price levels or higher this week, which seems likely, the RSI is back above 60 supporting higher Tesla share price.
If closing above the gap area i.e., closing above 265.25 there is room up to resistance at around 313.60.
It is quite likely however, Tesla will experience a correction before managing to close above the Gap area i.e., closing above 265.25.
To reverse the medium-term bullish trend a close below 152.35 is needed
AI: The good, the bad, and the bubble
While a deep recession may not be iminent thanks to central bank policy, interest rates will have to stay high for longer, and this will be accompanied by volatility risk from the unwinding of bubbles, especially within AI.
Steen Jakobsen,
Chief Investment Officer
The emergence of advanced AI systems is by far the most surprising event this year, turning everything upside down, while risks and benefits are debated. AI will also become an arms race between the US and China.
Peter Garnry,
Head of Equity Strategy
As China navigates global fragmentation, its cycle of technology application, productivity enhancement, and growth is threatened by US breakthroughs in generative AI, limited computing power, and geopolitical tensions.
Redmond Wong,
Market Strategist
Japan’s expertise in semiconductors and robotic integration could be the foundation of AI dominance. Combining two of this year's themes, Japanese equities and artificial intelligence, brings a wave of opportunities.
Charu Chanana,
Market Strategist
The AI fever has turned the technology into a darling, pushing crypto further into no-man’s-land. There are striking similarities between AI and crypto, and if these are to come full circle, AI won't be spared for bubbles.
Mads Eberhardt,
Cryptocurrency Analyst
Stocks related to artificial intelligence (AI) have appeared on investors' radars. Expectations are high, but it may be necessary to consider how to get exposure to AI in a diversified way.
Hans Oudshoorn,
Trainer Academy
The USD is on its back foot as markets celebrate an eventual Fed rate peak and steady long US yields. The stakes are even higher for the Japanese yen if longer major sovereign yield curves have to price in economic acceleration.
John J. Hardy,
Head of FX Strategy
While commodities, broadly speaking, have faced some tough months, a partial reversal during June could signal that the asset class is getting back on its feet with energy holding up and precious metals with upside potential.
Ole S. Hansen,
Head of Commodity Strategy
As inflation remains high central banks face hard decisions about whether they should keep hiking interest rates or stop. Meanwhile, the rise of AI creates bubble-like conditions that only make the decision harder.
Althea Spinozzi,
Senior Fixed Income Strategist