Tesla stock analysis shows that a bullish breakout has taken place, with the share price of the electric motor vehicle maker moving to a new all-time high.
Tesla share price analysis suggests that the breakout could target $540.00 over the medium-term.
Tesla medium-term price trend
Tesla share price analysis shows that a major technical breakout has taken place on the daily time frame, with Tesla’s stock price moving to a new record high.
According to the size of the inverted head and shoulders pattern on the daily time frame Tesla’s stock price could eventually rally towards the $540.00 level.
Traders should note that the breakout is valid while price trades above the $390.00 support level, which is the neckline of the bullish pattern.
Some caution is also advised, as the stock is highly volatile and has moved into extreme overbought territory on the daily RSI indicator. However, the momentum indicator is bullish and a golden cross is underway on the daily time frame.
Key upside resistance is located at the $450.00 and $480.00 levels, while key downside support is found at the $400.00 and $390.00 levels.
Tesla short-term price trend
Tesla stock analysis over the short term shows that bulls are in control while price trades above the $270.00 level.
The short-term technicals surrounding the stock are indeed encouraging, however, bearish MACD price divergence is present on the lower time frames.
The 30-minute time frame shows substantial amounts of bearish price divergence extending down towards the $375.00 level.
With this is mind, it may be prudent to wait for the negative MACD divergence to be unwound before entering into fresh short-term buy positions.
The $400.00 level is currently providing strong short-term support, while the $425.00 level is the strongest area of short-term resistance.
Traders should also note that the RSI indicator is also extremely oversold on both the higher and lower time frames. Watch out for a downside correction to take effect once the $400.00 level is broken.
Tesla technical summary
Tesla stock analysis highlights that a major bullish breakout above the $400.00 level has taken place, with medium-term bulls targeting the $540.00 level.
Watch out for a potential technical correction due to the bearish MACD divergence on the lower time frames.
