Technical Update - Tesla could experience a short sweet rebound. Down trend likely to stay intact Technical Update - Tesla could experience a short sweet rebound. Down trend likely to stay intact Technical Update - Tesla could experience a short sweet rebound. Down trend likely to stay intact

Technical Update - Tesla could experience a short sweet rebound. Down trend likely to stay intact

Equities 2 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Bottom and reversal pattern formed in Tesla. A short-term rebound is in the cards. Strong overhead resistance and down trend could quickly resume

Tesla formed yesterday a Bullish Engulfing bottom and reversal candle. Combined with RSI divergence there is strong indication of a bounce in the beaten down stock

Bullish move to the lower edge of the gap area at 195.12 is in the cards.

A close above 195.12 and buyers will try closing the gap i.e., trying to push Tesla to close above 207.83.
If they succeed and Tesla does indeed close above 207.83 further upside is likely with potential to around 226.
But if Tesla is failing to close above 195.12 a new vawe of heavy selling is most likely resulting in the past couple of days lows being taken out.
Even if Tesla is closing above 195.12 it still needs to close the gap. Failing to do so will also resulting in down trend resuming: Bottom line: Closing the gap is crucial for Tesla to establish and build and uptrend.

Medium-term Tesla is in a down trend – lower lows LL and lower highs LH as illustrated on the chart

RSI is showing negative sentiment indicating lower Tesla prices. No strong support until around 152.


Source all charts and data: Saxo Group

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (
- Full disclaimer (

Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.