Technical Analysis – Tesla bulls speed up towards January’s blocks
- Christina Parthenidou
Tesla’s stock has finally claimed the tough resistance of 720.00 but another hurdle popped up around the 777.00 level on Wednesday. The area coincides with January’s swing low and the 23.6% Fibonacci retracement of the 432.83 – 899.98 rally; therefore it could be a tough obstacle to overcome.
Nevertheless, neither the RSI nor the Stochastics have confirmed overbought conditions, and with the price having jumped above the Ichimoku cloud, the bulls may not easily abandon the game. If they successfully drive above 777.00, the 817.00 barrier could immediately press upside movements as it did during the first months of the year. The next battle could develop within the crucial 879.00 – 899.98 territory.
For the bears to take control, the price should slip below the 700.00 mark and the 38.2% Fibonacci. Such a move could initially stabilize around the 50% Fibonacci of 639.36 before stretching towards the 600 round-level. Lower, a decisive close below the 200-day exponential moving average (EMA) and the 61.8% Fibonacci of 544.52 would re-activate the downfall from January’s top, likely triggering a new bearish phase in the market.Summarizing, the short-term bias for Tesla’s stock is still positive, though any potential upside push may come with some delay if the tough resistance around 777.00 holds firm.
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