After that stellar rally earlier in the year, TSLA stock prices appear to have peaked and are starting to move lower. Price has recently crossed below the 50 simple moving average, which act as a dynamic support or resistance level for the share price.
Since that breakdown, the 50 SMA has been holding as resistance in the past two months. TSLA stock price has recently made a pullback to that level, which is right around the $210.00 mark. At the same time, spinning tops and doji candlesticks have formed on the resistance area, indicating that the short-term rally is about to turn.
TSLA Stock Forecast
Take note though that MACD is moving higher, which suggests that there is still some buying pressure left. TSLA stock could continue to hover around the resistance area until enough sellers are able to jump in and push MACD lower.
As for RSI, the oscillator is already moving down, indicating that selling pressure is starting to increase. A selloff for TSLA stock could take price down to the next support area at $180, which is right around the 200 simple moving average. A break below this dynamic support zone could be a signal of further declines for TSLA stock prices.
A descending trend line can be drawn to connect the recent highs ever since Tesla share prices peaked in late February to early March. The price is currently testing this falling trend line resistance as well, with an upside break indicating that a longer-term rally could take place. In this case, TSLA stock could climb back to the previous highs at $260 or possibly make new ones to climb until the $300 mark. After all, electronic vehicle sales are estimated to triple in the next decade, with Tesla set to take the lead among manufacturers.
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