Tesla Share Prices Approaching Record Highs

Tesla Share Prices Approaching Record Highs

Tesla Share Prices Approaching Record Highs

Tesla share prices have still been rallying for consecutive days, as the stock is now approaching record highs. Price is nearing the $280/share resistance level and may be due for an upside break and further gains.

However, stochastic is already indicating overbought conditions, which suggests that the rally might be overdone and that a selloff might take place. RSI is still moving up so there might still be enough buying pressure left to spur a continuation of the rally.

The 100 SMA is still moving above the longer-term 200 SMA, confirming that the path of least resistance is to the upside and that the uptrend could carry on. Retracements could last until the 100 SMA, which has acted as a dynamic support area in the recent pullback.

Tesla Share Prices Outlook

Investors are still maintaining their “Hold” recommendation for Tesla stock, following reports that the company will delay the launch of its Model 3 car. Reports showed that Tesla may be pushing back the launch of its $35,000 200-mile electric vehicle to 2018, later than its prior plans of having a debut for the design concept in the first quarter of 2016, with deliveries beginning in 2017.

“We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity,” says TheStreet Ratings team.

Revenue from other products offered by the company, namely its Powerwall and Gigafactory could still keep earnings figures strong and Tesla share prices climbing for the upcoming quarters.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.