Technical Update - Tesla close to testing key resistance. Can it break it ?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Tesla bounced strongly over the (Northern Hemisphere) summer to the 0.618 retracement of the April-May sell-off and is set to test strong resistance area at 314.50-316.50 within next few days. A close above 316.50 will confirm the uptrend and is likely to send Tesla towards to the 1.618 projection of the August-September correction at 344.90 and the 0.786 retracement at 346.32 of the April-May sell off.
RSI above 60 showing positive sentiment but there is currently divergence indicating an imbalance in the market is supporting this scenario. Usually, it indicates that a trend is weaking. However, RSI has broken above its falling trendline so if Tesla share price closes above its resistance area the RSI divergence is likely to be traded out i.e., cancelled.
A close above the resistance is also likely to widen the Bollinger bands supporting the uptrend.
Rising trading volume over the past two weeks supports the uptrend.
If Tesla is rejected at the resistance and closes back below 290.40 it could drop to test its lower rising and the 55 SMA. A break below the support at 265.74 will be tested.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)