A Technical Look At Tesla Stock As Musk Calls For 'Most Intense Delivery Week Ever'

Tesla Inc. TSLA shares are trading higher Monday.

CEO Elon Musk said to employees of the company in his traditional end-of-quarter memo that this week will be the company’s “most intense delivery week ever.”

Tesla was up 2.53% at $793.97 Monday afternoon. 

Tesla Daily Chart Analysis

• After breaking out of a pennant pattern, the stock saw a bullish move and has continued to push higher along the pattern support. This line is now acting as a higher low trendline and acts as a potential rate of growth for the company’s stock price.

• This trendline will likely hold as a support level for the stock until the stock sees a move below the trendline with above-average volume. If this occurs, it could be a sign the stock is nearing a change in trend.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been moving higher in the last few days and now sits near the border of the overbought range with a level of 69. 70 is the start of the overbought area, where the stock is likely seeing much more buying pressure than selling pressure.

See Also: Tesla To Have 'Most Intense Delivery Week Ever': Could It Help Q3 Earnings?

What’s Next For Tesla?

Bulls are seeing a nice push up and seeing the stock hold above the trendline; this indicates that bulls are in control of the stock. After pushing higher quickly, bulls wouldn’t mind seeing the stock dip back to the higher low trendline and bounce to keep a slow steady sustainable growth rate.

Bearish traders are looking to see the stock start fading and drop down below the higher low trendline. If this trendline begins to hold as a resistance level, it may signal that the stock is ready to see a strong bearish push.