Tesla Gains Despite Safety Probe Into the Brand's Crashes

Summary:

Tesla share price rises despite probe announcement, as investors try to force a return to the uptrend following a steep correction.

Tesla share price shook off the announcement of an investigation into crashes involving its vehicles, as it looks to end the week on a positive note.

Tesla stocks are up 1.03% and aiming for a 3rd straight winning session even though U.S. auto safety regulators said on Thursday that they will conduct 30 investigations into 10 fatal driver-assistance-related Tesla crashes.

The National Highway Traffic Safety Administration (NHTSA) said its Special Crash Investigations program would review the Tesla crashes, going back to 2016.

Technical Levels to Watch

The active daily candle has violated the upper edge of the symmetrical triangle, but this needs to translate into a 3% penetration close to confirm the breakout. Breakout confirmation opens the door for bulls to make a push towards 654.12 (9 December 2020 high/6 May low), with additional targets at 693.75 (18/30 December 2020 highs and 19 April low) and 725.00.

On the flip side, failure to confirm the breakout keeps the price action within the pennant’s consolidation area, where bears may attempt a breakdown of 600.84. A successful breakdown of this area also takes out the pennant’s lower border, targeting 564.57, 541.10 (5 March low) and potentially, 489.55.