Tesla Inc. (NASDAQ: TSLA) has been making headlines with its recent Cybertruck delivery event, positive analyst reiterations, and robust Chinese insurance registration data. These developments have fuelled investor optimism, and the stock has gained over 9% in the past month.
Despite European labour strikes and a sharp decline in UK registrations for November, particularly concerning Model Y, Tesla stock maintains investor attention. Analyst reaffirmation from Wedbush’s Daniel Ives and continued hype around the Cybertruck drive retail interest.
Technical Analysis
The daily chart shows that Tesla’s current price stands at $238.72, trading within an ascending channel. The bulls are currently in control, with price action trading above the 20-SMA (green line) and 50-SMA (blue line), with the 100-SMA (orange line) likely to provide significant resistance in the short term. The RSI is trending flat, suggesting that there is no clear direction for the stock in the short term.
Short-term trading opportunities towards the $249.52 resistance level could arise should the bulls sustain a push above the 100-SMA. A break above the initial resistance could confirm the bullish momentum, likely bringing the $261.29 and $272.55 resistance levels within the bulls’ reach in the short term.
However, a push below the SMAs would leave a potential for continued bearish pressure towards the $225.28 support level. A break below the initial support could trigger a run lower and would likely bring the $212.18 support level into play.
Summary
Tesla’s stock, fuelled by Cybertruck optimism, faces challenges from European strikes and a UK registration slump. Bullish momentum could push to $249.52 and $261.29 should a push above the 100-SMA materialize, while a bearish turn might test $212.18 support.
Sources: TradingView, MoneyWeb, Tesla, KoyFin, Dow Jones Newswire, MT Newswire, CNBC.
Piece Written by Mfanafuthi Mhlongo, Trive Financial Market Analyst
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