Tesla Inc. - (TSLA) - April 30, 2024

SIA Charts’ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.

Until yesterday, Tesla (TSLA) had been stuck in the red zone of the SIA S&P 100 Index Report, spending much of that time at or near rock bottom. In the last few days, since the company released its latest earnings report and announced progress on both new mainstream lines of electric vehicles and driverless cars, the shares have roared back to life.

In the last week, TSLA shares have popped 36.6%, and they are up 10.4% over the last month, compared with a 1-month loss of 2.2% for the S&P 100 Index. Yesterday, TSLA shares jumped 46 spots in the SIA S&P 100 Index Report to 51st place, leaving the red zone and returning to the Yellow Neutral Zone for the first time since October.

For the six-month period from October 25 to April 25, when TSLA was in the red zone, and before the current rally started, TSLA shares fell 19.9% compared with a gain of 20.6% for the S&P 100 Index over the same period.

Tesla (TSLA) shares have attracted significant new interest in the last week. Twice in recent days, TSLA has gapped upward on a big spike in volume, a sign that bulls have re-emerged from their previous slumber. The latest gap up yesterday was particularly significant as it snapped a downtrend line and enabled the shares to break out over their 50-day moving average, both bullish technical signals.

So far, this action appears to be a sharp upward correction within a long-term downtrend. To signal that is rally may be sustainable, first the shares would need to retake the $200.00 round number with further resistance possible near $210.00, a previous support level, then a long-term downtrend resistance line near $240.00.

Since July of 2023, Tesla (TSLA) shares have been under distribution with selling pressure having intensified since the start of this year. A rebound now appears to be starting with the shares rallying up from near $140.00 back up above $190.00 and completing a bullish Double Top pattern.

To confirm the start of a new upswing, TSLA would need to close above $203.40 initial resistance which would also complete a pending bullish spread double top pattern. Should that occur, previous column highs and lows on trend suggest potential resistance near $215.85, $233.60, or $243.05. Initial support appears near $177.05 based on a 3-box reversal.

With a bearish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 5 out of 10, TSLA is still exhibiting short-term weakness against the asset classes but that would change to strength if the score were to increase by one to 6.