SIACharts Logo

Commentary >

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.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.