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May 28, 2023
- Market price breaks $6.13 above key Fib handle of $187.04
- The lower Bollinger Band® is currently at $154.3 while the higher band is at $195.08
Tesla has posted further gains as part of a 3 day trend that has already seen the stock gain $1.57. Tesla lived up to expectations Friday by maintaining its set course — after ending Thursday at $184.47, Tesla went up to $198.6 only to drop back, yet still traded well overall and closed at $193.17 Friday.
The stock has been trending positively for about 30 days. This year has been a bright one for Elon Musk's EV company after trading as low as $108.1 and going on to appreciate by 85.58% year to date.
Trend analysis indicates that investors are seeking long positions as Tesla price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Price action overcame a known Fibonacci resistance level at $187.04 by around $6.13 with prices hammering out a $184.53 – $198.6 session range. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $195.08, thereby suggesting that Tesla is becoming overvalued. A study of Tesla's historical price actions shows although Tesla is appreciating today after rising as high as $198.6, price action is now slowing and consolidating around $6.5 below the $199.67 resistance level.
Overall, while Tesla has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
This rally in Tesla's share price coincided with other consumer discretionary stocks as Amazon gained 4.44%, as it traded at $120.11. Lowe's was up 2.73%. Alibaba traded at $80.97 after closing Friday's trading day at $78.78 (up 2.78%).
