Tesla’s share price has been range-bound between the $1,000 and $1,800 level, following the recent stock market plunge, which saw Tesla’s share price tanking from $1,230 to $980.00.
Still, Tesla bulls have much to cheer about. The electric automobile maker survived the recent massive drop in global equity markets, which saw last swaths of Octobers price gain wiped out for the Nasdaq and the S&P 500.
Tesla’s share price is getting comfy above $1,000 again, which could hint that the fair value for Tesla is still around current levels, and more positive news could turbocharge Tesla’s share price to a new all-time high.
To give some perspective on the Autumn rally, the first 19 trading days from Oct. 8 to Nov. 4, Tesla shares soared 57 percent, which is huge for a stock listed on a major US exchange.
Traders cheer the bumper third-quarter earnings report, followed by the Hertz news, which unveiled the companies huge plans to buy 100,000 Tesla shares for its rental fleet.
Tesla, a $1 trillion market is coming into question by some analysts, however, with the big green agenda being rolled out by the USA government and the build back better bill, this electric automobile company could be just getting warmed up.
I would suggest keeping a close eye on the $1,000 to $1,230 price range over the coming weeks and months as the pattern is suggesting a major 200 point plus move is coming, which roughly equates to a 20 percent directional move.
Tesla Short-term Technical Analysis
According to the four-hour time frame, Tesla has reversed large amounts of price divergence during the recent drop from the $1,200 level on the Nasdaq.
The negative divergence extends down towards the $1,000 and also the $900.00 level. A key technical test of the $900.00 region could present a massive dip-buying opportunity for Tesla bulls, however, the $1,000 level is well-defended.
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Tesla Medium-term Technical Analysis
According to the daily time frame Tesla’s stock price is trapped inside a massive triangle. These types of patterns are fairly neutral, however, it does suggest a huge price move is coming.
The overall break is likely to be in the 20 percent range as mentioned early. Keep a close eye on the $1,000 to $1,200 area as highlighted by the attached charts over the coming weeks.
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