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June 06, 2023
- Tesla hasn't traded above $221.29 for 3 months.
- Upward momentum including 1.7% gain insufficient to breach pivotal resistance level at $221.09
Tesla has posted further gains as part of an 8 day trend that has already seen the stock gain $31.07. Yesterday's session pointed in the same direction — after closing at $213.97 on Friday, Tesla maintained a strong bullish bias that helped the stock close higher at $217.61 yesterday. However, market bears ensured the the trendy EV maker topped out at $221.29 and that by the end of the session, the market had marked out a distinct $214.52 to $221.29 range.
The stock has been trending positively for about a month. The trendy EV maker has managed to gain 104.83% so far this year despite trading at lows around $108.1 previously.
Support/Resistance levels obtained from chart analysis indicate that although Tesla is appreciating today after rising as high as $221.29, price action is now slowing and consolidating around $3.48 below the $221.09 resistance level. Trend-following investors would be interested to note that investors are seeking long positions as Tesla price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Momentum evaluation shows that the Relative Strength Index indicates Tesla is currently 'overbought' which suggests new gains will be harder to obtain. Analysis based on the asset volatility indicates that Tesla's upper Bollinger Band® is at $221.53, this is a slight indication of a slowdown.
Notwithstanding Tesla's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Fundamental indicators – United States ISM Non-Manufacturing PMI (May) released yesterday at 14:00 UTC with a figure of 50.3, while the previous figure was 51.9.
A look at other consumer discretionary stocks also showed bullish price action as Amazon was up 0.85%.
While Tesla was bullish yesterday, the following consumer discretionary stocks underperformed: Nike went down 2.39%, closed at $107.78. Lowe's closed at $206.78 (down 1.44%).
Upcoming fundamentals: tomorrow at 14:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 1.15 million from the preceding figure of 4.49 million.
