Here's Why Tesla Looks Charged Up For A Drive Further North

Zinger Key Points
  • Tesla reversed course into an uptrend after printing a bullish double bottom pattern.
  • The stock printed a Marubozu candlestick on Wednesday, indicating higher prices were in the cards for Thursday.

Tesla, Inc TSLA rallied 7.67% Wednesday, with most of the bullish price action taking place after Fed Chair Jerome Powell began to speak at the Brookings Institution.

The S&P 500 surged 3.15% after Powell suggested the central bank could begin easing back on its interest rate hikes starting as early as next month, which pulled up many growth stocks. 

Tesla is planning to ramp up production at its Giga Texas plant beginning in the first quarter of 2023. The EV giant plans to roll out 5,000 Model Y vehicles from the facility, up massively from the 1,000 units per week Tesla was producing at the Austin factory in August, according to a report.

The company is anticipating a surge in demand for its electric vehicles next year, when the new EV tax credit becomes available.

In the premarket on Thursday, Tesla was trading about 1.3% higher in continued momentum. The stock recently reversed course from a downtrend and on Wednesday, Tesla confirmed a new uptrend is in play.

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The Tesla Chart: Tesla reversed into an uptrend on Nov. 22 after forming a double bottom pattern near the $166 level on that day and the day prior.

Tesla’s most recent higher low within the uptrend was printed on Tuesday at $178.75 and the most recent confirmed higher high was formed at the $188.50 mark on Monday.

  • On Wednesday, Tesla printed a massive bullish Marubozu candlestick, which indicated higher prices were likely in the cards for Thursday. If Tesla gaps up to start Thursday’s trading session and continues to rally intraday, the stock will print a bullish kicker candlestick, which could indicate higher prices will come again on Friday.
  • Eventually Tesla will form a temporary top, which may be signaled by the creation of a bearish reversal candlestick, such as a doji or hammer candlestick. On the next retracement, bullish traders will want to see Tesla bounce up from the $180 mark to keep the uptrend intact.
  • Tesla has resistance above at $200.51 and $213.13 and support below at $190.41 and $177.59.

Photo via Shutterstock. 

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