Technical Analysis – Tesla’s stock shoots to new record high after joining S&P 500
November 20, 2020 1:29 pm
Tesla’s stock overshot above a symmetrical triangle in the four-hour chart and unlocked a fresh record high of 508.26 after its entrance to the S&P 500 community, but failed to close above September’s top of 501.50 on Thursday.
The Stochastics is seeking a turning point above their 80 overbought mark as the RSI seems to be slowing pace while remaining comfortably above its own 70 overbought level. In other indicators, the red Tenkan-sen is also reflecting some uncertainty about the positive momentum in the price as it remains close to the blue Kijun-sen.
That said, neither indicator has shown a convincing downside reversal yet, hence the basic scenario is for the stock to keep improving. Perhaps, a close above the 500 mark could add more fuel to the rally, pushing resistance up to the 550 number.
Alternatively, a backward flip may initially stall around the supportive red Tenkan-sen line at 456.40 before it extends to the upper surface of the triangle seen around 430. If the bears claim the latter, the next stop could be at the bottom line of the triangle and the 400 hurdle. Another step lower would increase the case of a down-trending market and resume a bearish outlook, especially If the 200-period exponential moving average (EMA) gives way too.
Summarizing, Tesla’s stock is bullish in the short-term picture, though some stabilization should not be a big surprise as the market trades in overbought waters.
Tesla’s stock overshot above a symmetrical triangle in the four-hour chart and unlocked a fresh record high of 508.26 after its entrance to the S&P 500 community, but failed to close above September’s top of 501.50 on Thursday.
The Stochastics is seeking a turning point above their 80 overbought mark as the RSI seems to be slowing pace while remaining comfortably above its own 70 overbought level. In other indicators, the red Tenkan-sen is also reflecting some uncertainty about the positive momentum in the price as it remains close to the blue Kijun-sen.
That said, neither indicator has shown a convincing downside reversal yet, hence the basic scenario is for the stock to keep improving. Perhaps, a close above the 500 mark could add more fuel to the rally, pushing resistance up to the 550 number.
Alternatively, a backward flip may initially stall around the supportive red Tenkan-sen line at 456.40 before it extends to the upper surface of the triangle seen around 430. If the bears claim the latter, the next stop could be at the bottom line of the triangle and the 400 hurdle. Another step lower would increase the case of a down-trending market and resume a bearish outlook, especially If the 200-period exponential moving average (EMA) gives way too.
The post Technical Analysis – Tesla’s stock shoots to new record high after joining S&P 500 first appeared on XM.
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