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
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As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
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