Tesla’s share price hit new record highs for its split stocks, ensuring that the company has recorded a price gain of more than 700% in the past year.
Tesla has come out of the pandemic so strong, its owner is now the 2nd richest in the world after Amazon’s Jeff Bezos. Furthermore, Tesla does not face the same antitrust allegations as Amazon, and interest in the stock seems to keep rising ahead of its listing on the S&P 500 index next week.
Tesla is expected to receive continued interest in its stock, as the listing provides an opportunity for funds that track indices to pick up more of the stock to reflect the rebalanced weighting. At a current price of $661.30 at the time of writing, Tesla looks set to be the most valuable company ever to join the S&P 500 index.
A historical high at 697.55 appears to the target on the horizon for buyers, following today’s surge over the 654.12 resistance. This resistance break still required time/price filter confirmation. Tesla’s violation of 654.12 follows a period of range-trading in the last two weeks. Further gains may benefit from a bounce on this resistance-turned-support level following confirmation.
On the flip side, a breakdown of 654.12 allows Tesla’s share price to return to the previous range. If the decline extends below 601.39, we could see Tesla’s share price targeting 564.57 and possibly 541.18. The sentiment is bullish, so any dips in price could be areas to initiate buy entries.
