Tesla Sees A Breakout And Consolidation: Is It Ready For The Next Leg Up Soon?

Tesla Inc. TSLA shares are trading higher Monday after the stock received an upgrade to Buy from Jefferies. The stock received a price target of $850, upgraded from the previous target of $700.

Tesla was up 2.10% at $713.76 at last check Monday.

Tesla Daily Chart Analysis

• Shares broke out of a pennant pattern and are consolidating, possibly looking to see another leg in the coming weeks.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock is likely bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The price was condensed tighter until it saw a breakout above resistance, now consolidating the price could be ready for another push when above average volume moves into the stock.
• The Relative Strength Index (RSI) has been moving higher and now sits at 64. This shows the stock has seen more buying pressure than selling pressure in recent weeks.

What’s Next For Tesla?

Bullish traders are seeing consolidation now, and are hoping soon the stock pushes higher on above average volume. Bulls would like to see the next leg up following consolidation.

Bears would like to see the stock move lower and fall below the pattern support line. Bears also want to see a push below the moving averages for a potential change in trend and sentiment.

See also: How to Invest in Tesla Stock

Photo: Courtesy Tesla