The Tesla stock price is making all the right moves and looks primed for a fresh assault on $800. Elon Musk has again steered TSLA investors out of trouble.
Tesla Inc (TSLA: NASDAQ) gained $16.85 (+2.51%) to finish the day at $688.72.
Despite the NASDAQ going great guns, in the last six months, TSLA remains in the red for 2021. The EV maker has repaid investors with a -2.4% performance year to date.
However, recently, the Palo Alto-based car manufacturer has shown incredible resilience despite more than few hiccups. Furthermore, the technicals are steadily improving.
Even yesterday’s announcement that TSLA will recall 285,000 vehicles in China for a software upgrade couldn’t stop the Tesla stock price from finishing in the green.
The stock’s newly-found ability to brush aside negative news led me to ask 10 days ago: Is the Tesla stock price about to surprise on the upside?
Since then, TSLA has improved by just over 10%, and now I am getting even more bullish.
The daily chart shows that TSLA has broken above a downtrend from the Jan 25th high at $900.40.
Even more encouraging is the price-performance once the stock broke out. On Thursday, TSLA cleared the trend line at $676, on its way to $697.62, eventually closing at $679.82 and marginally above the trend. However, by Friday’s close, TSLA had slipped below the trend line, finishing at $671.87.
For all intents and purposes, this could be considered a false breakout. Nonetheless, yesterday, the price was back in the green and again on the right side of the trend.
This reinforces the validity of the trend line and is a constructive development. In addition to the trend line, the 100-day moving average is seen at $672.99. This contributes to the significance of the support just above $670.
If the price can sustain itself above this support in today’s session, an extension to $777 looks logical. This level has notably proved both good support and resistance this year.
The basis of this bullish thesis relies heavily on the price staying above the support. Therefore, if TSLA closes below $672.99, the immediate upside recommendation becomes invalid.
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