Technical Analysis – Tesla stock remains confined within a long-term range


Marios Hadjikyriacos, XM Investment Research Desk

Tesla’s stock has been trading within a wide sideways range – between 380.0 and 214.0 – since March 2017. The long-term outlook is therefore neutral, as is the short-term one, with the price oscillating between 324.0 and 280.0 for one month now.

Looking at short-term momentum indicators, they paint a cautiously negative picture. The RSI seems headed for a test of its 30 zone, while the MACD has just crossed below its red trigger line.

In case of another wave of declines in the market, sellers could encounter their first obstacle near 280.0. A clear break below that zone may open the way for a test of the October lows, at 245.0.

If buyers retake control though, resistance to advances may be found near the 324.0 territory, where the 200- and 50-day simple moving averages are also roughly located, at 315.0 and 321.0 respectively. A bullish violation would turn the focus to 352.0, the January 16 top.

In brief, as long as price action remains between 380.0 and 214.0 the long-term outlook is neutral. In the short-term however, a break either above 324.0 or below 280.0 could offer the directional bias.