Market Overview

Tesla Shares Charging Higher: A Technical Look

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Tesla Motors Inc (NASDAQ: TSLA) shares were trading higher by $11.50 (4.5 percent) at $264.51 in Tuesday's session. With no specific news out on the issue, let's examine the technicals for a possible explanation to the rally.

Of course, the major rally in the broad market is adding to the buying pressure in the issue.

After a higher open, it retreated but found support ahead of Monday's low ($250.79), reaching $251.84 before embarking on its move higher. Those two lows coincide with its low from June 17 at $252.02.

Since July 20, it has come down hard off its recent high ($286.85) with a $282.26 close. What really got the issue moving to the downside was a downgrade by UBS to Sell and reduction in its price target from $220 to $210.

So far, it has reached $265.40 and is not far from that level. That exceeds Monday's high, but is shy of Friday's high at $271.09.

Posted-In: Premarekt outlookTechnicals Intraday Update Movers Trading Ideas

 

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