TSLA Shares Recover on Tesla Powerwall Launch

TSLA Shares Recover on Tesla Powerwall Launch

TSLA Shares Recover on Tesla Powerwall Launch

TSLA shares drew strong market attention once more after Tesla CEO Elon Musk launched the company’s latest developments in his keynote speech. After years of research and development, Tesla unveiled the Tesla Powerwall, which is envisioned to revolutionize the power industry in the U.S. and in the world.

Prior to this, market expectations for the product launch have allowed the stock to break past the trend line resistance on its longer-term time frames. TSLA shares also broke above the moving averages and indicated that an uptrend is underway.

TSLA Shares Forecast

Before TSLA shares climb any higher though, price could pull back to the broken trend line resistance, which might now hold as support. This lines up with the 61.8% Fibonacci retracement level on the breakout move, although a shallower retracement might be in order.

Note that the 38.2% Fibonacci retracement level also lines up with an area of interest around the previous resistance at $220/share. Stochastic is still moving down though, hinting that a larger correction might still be possible.

Sales of the Tesla Powerwall are slated to start in a few months, with the 7 kwh model retailing at $3,000 excluding installation and maintenance fees. According to Musk, this battery should allow households to rely purely on solar energy, as it would be able to store electricity power for much longer. The company has also launched larger batteries for industrial use and has highlighted the progress in its Gigafactory in Nevada.

Further gains for TSLA shares could take price up to the $250/share level or all the way up to the previous year highs near $280/share or higher. While the company earnings haven’t been so impressive for the first quarter of the year, revenue and profit could surge in the coming months due to increased sales of its new products versus electric cars.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.