Tesla Motors Inc. - (TSLA) - June 1, 2023
A long-term relative strength downtrend in Tesla Motors (TSLA) shares appears to be ending. In the last few weeks, TSLA has rocketed up from the bottom of the red zone in the SIA S&P 100 Index Report and has climbed 70 positions in the last month toward the top of the Yellow Neutral Zone. Currently in 33rd place, TSLA is in its highest rank since September and is 7 spots away from a return to the green zone, where it has not been since January of 2022.
Accumulation appears to be resuming in Tesla Motors (TSLA) shares. In April, a correction bottomed out at a higher low above the $150.00 round number. Since then, TSLA has been steadily climbing. Yesterday, TSLA closed back up above the $200.00 level but more importantly, it closed above its 200-day moving average for the first time since September, a bullish signal.
Downtrend lines suggest the potential for resistance near $215.00 or $275.00, with the $250.00 round number in-between. Initial support appears at the 50-day moving average near $180.00.
Tesla Motors (TSLA) is starting to look more encouraging technically. A recent retreat bottomed out at a higher low and the shares have started to climb once again, triggering a bullish Low Pole Warning. This suggests that the January low may be a significant bottom and a recovery trend may be starting.
Initial resistance appears at the February high near $215.85. A breakout there would confirm the start of a new upleg and uptrend. Should that occur, next potential resistance may appear near $257.95 or $273.75 based on previous column lows. Initial support appears near $191.65 based on a 3-box reversal.
With its bullish SMAX score increasing to 7, TSLA is exhibiting strength against the asset classes.
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