Tesla shares have been on a short-term climb after finding support at the 200 simple moving average and climbing back to the $250/share level. However, the recent rally might come to a halt as the price is testing a key resistance zone and may be due south once more.
The stock price is currently moving at the 50 SMA, which has acted as a dynamic inflection point for Tesla shares. MACD is indicating a potential pickup in buying pressure though, as the indicator is heading north. In this case, price could break past the 50 SMA and make more gains past $250/share.
Tesla Shares Outlook
RSI is also reflecting a return in buying momentum, as general market sentiment improved in the past few days. US equities reached new highs, with the dollar drawing more support even after the US economy printed a weak October NFP reading. Tesla shares have benefited from these recent rallies, allowing the price to move close to an area of interest as well.
As you can see from the daily chart, price is nearing a former support zone and broken neckline of a head and shoulders pattern. Should the $260-270/share level hold as resistance for now, price could form a larger head and shoulders pattern and indicate a potential longer-term selloff.
On the other hand, a move past $270/share could mean a test of the previous highs around $290/share. Further gains past this area could lead to a move until $300/share for Tesla shares.
News that Apple might buy the company is lending support for the Tesla shares, as investors recently took the opportunity to buy stocks at cheaper levels. AAPL has strongly been rallying on anticipated high demand for Apple gadgets this Thanksgiving and Christmas season, yet the company’s financials have been far from impressive for now.
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