top of page
  • Writer's pictureRealFacts Editorial Team

Tesla’s Turning Point. Hope for A Bullish Breakout on the Horizon?

Tesla factory

Tesla (TSLA) has faced significant challenges this year, with its stock dropping approximately 25% in the S&P 500. Despite this, there are signs that a turnaround might be in sight. While top performers like Nvidia show signs of short-term fatigue, Tesla’s recent movements indicate a possible rebound against the trend. Technically, Tesla has been on a downward cycle, trading below key benchmarks like the 200-day moving average and weekly cloud model. However, after stabilizing near critical support around $152 last seen in April 2023, Tesla seems to have found some stability, suggesting a potential reversal.

Recently, Tesla managed to surpass several short-term resistance levels, including the 50-day moving average and daily cloud model. This has led to an improvement in medium-term momentum, supported by the weekly MACD indicator. Despite these positive developments amidst an overarching downtrend, there are indications of further potential upward movement. Weekly stochastics also support this trend, indicating no signs of overbought conditions that typically precede a reversal. Additionally, the daily MACD has turned positive from a neutral position, suggesting Tesla could be ready for an upward breakout from its current consolidation phase.

In terms of price targets, initial resistance for Tesla is expected around $207, corresponding to a gap from January and aligning with both the 200-day moving average and weekly cloud model. Initial support is projected near $169, defined by the daily cloud model; dropping below this level would invalidate the bullish scenario. With medium-term indicators signaling positivity, Tesla could potentially target long-term resistance levels between $220 and $225 by mid-July. However, it’s essential to recognize the risks associated with counter-trend strategies and implement effective risk management practices, such as stop-loss orders, to mitigate potential losses.


bottom of page