Technical Analysis – Tesla posts fresh 9-month high ahead of Q2 earnings
July 18, 2023 1:27 pm
Tesla’s stock has been in a sustained uptrend since late April when it found its feet at the 152.00 support zone. Moreover, in the latest daily session, the price jumped to 291.60, its highest level since September 2022 just two trading sessions ahead of the firm’s Q2 earnings report.
Despite this strong rally, the momentum indicators are currently reflecting a divergence. The MACD remains positive but below its red signal line, while the RSI has entered the 70-overbought territory.
Should the recent advance resume, the triple-top region of 313.70 formed in August-September 2022 could initially cap the stock’s upside. Breaking above that crucial zone, the price could ascend towards the April 2022 resistance of 362.00 before it tests the 382.60 peak registered in the same month. A violation of the latter might open the door for the January 2022 high of 401.00.
On the flipside, bearish actions could send the price back beneath the descending trendline, where immediate support could be found at the 264.00 barricade. Conquering this region, the bears could aim for the June support of 240.00. Failing to halt there, the stock might challenge the 216.80 resistance zone, which could serve as support in the future.
In brief, Tesla’s stock has been posting consecutive fresh multi-month highs, while crossing above the crucial downward sloping trendline that connects its lower highs since late 2021. However, traders should be aware that the upcoming earnings call could spur some volatility, sending the stock back below that important region.
Tesla’s stock has been in a sustained uptrend since late April when it found its feet at the 152.00 support zone. Moreover, in the latest daily session, the price jumped to 291.60, its highest level since September 2022 just two trading sessions ahead of the firm’s Q2 earnings report.
Despite this strong rally, the momentum indicators are currently reflecting a divergence. The MACD remains positive but below its red signal line, while the RSI has entered the 70-overbought territory.
Should the recent advance resume, the triple-top region of 313.70 formed in August-September 2022 could initially cap the stock’s upside. Breaking above that crucial zone, the price could ascend towards the April 2022 resistance of 362.00 before it tests the 382.60 peak registered in the same month. A violation of the latter might open the door for the January 2022 high of 401.00.
On the flipside, bearish actions could send the price back beneath the descending trendline, where immediate support could be found at the 264.00 barricade. Conquering this region, the bears could aim for the June support of 240.00. Failing to halt there, the stock might challenge the 216.80 resistance zone, which could serve as support in the future.
In brief, Tesla’s stock has been posting consecutive fresh multi-month highs, while crossing above the crucial downward sloping trendline that connects its lower highs since late 2021. However, traders should be aware that the upcoming earnings call could spur some volatility, sending the stock back below that important region.
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