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May 22, 2023
- Tesla hasn't traded above $189.31 for 4 weeks.
- The lower Bollinger Band® is currently at $151.15 while the higher band is at $187.18
Tesla has posted further gains as part of a 6 day trend that has already seen the stock gain $13.79. It was more of the same for Tesla today — pronounced bullish sentiment in the market helped Elon Musk's EV company to make a notable 4.85% gain today, rising $8.73 and ultimately closing at $188.87.
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 81.28% year to date.
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. Price action overcame a known Fibonacci resistance level at $187.04 by around $1.83 with prices hammering out a $180.11 – $189.31 session range. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $187.18, thereby suggesting that Tesla is becoming overvalued. Tesla chart analysis: Tesla is $3.22 away from testing key resistance at $192.09. Peaking above this level could inspire market bulls and open the path to further gains.
Notwithstanding Tesla's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Tesla went up today, yet these consumer discretionary stocks did not follow — Nike went down to $110.18, losing 4% after it closed at $114.76 today. McDonald's lost 2.1% today and closed at $289.35. Starbucks went down 2.47%, closed at $105.51.
Upcoming fundamentals: United States New Home Sales (Apr) is scheduled for tomorrow at 14:00 UTC.
