Since our last article about TSLA, the stock is up +25% rising from $188.25 to today’s $236.80.
The reason for this “monthly” gain is not just our technical analysis overview, of course.
Tesla has some burning cash issues, and not only that, but Tesla is also a great company with a significant potential for the future.
The company recently said it had delivered a record number of vehicles to its customers in the second quarter of 2019. Tesla delivered a total of 95,200 vehicles in the second quarter, setting a new record for deliveries and beating investor expectations which were set at 91,000. The company also said it reached record production of 87,048 vehicles. In addition, Tesla made significant progress streamlining global logistics and delivery operations at higher volumes, enabling cost efficiencies and improvements to their working capital position.
As mentioned, we are up +25%, and the reasonable question should be what is next here? Should we add a new position? Is it time to take profits? What about short selling?
Let us take a look at what technical analysis has to say.
It looks like $180 is for our significant support level, and excellent buying area. The current price is slightly under the big downtrend line, which in combination with the RSI levels should be closely monitored.
At the same time frame, we can notice that price is also on one of the important levels- $232. We do not have a crystal ball to say what precisely what can happen at this moment, but this can be a level for placing your stop loss.
On the hourly time frame, where RSI is near overbought levels and with price up +9.2% from MA200 time for we can expect some price reversals.
With H4 time frame situation is more or less the same. RSI is long enough in a bullish stream, MA200 is near price level, and it is for sure an important resistance level.
Our support level is on 232 and resistance level on 248. If you still have a buy position, it will be wise to use those as S/L and T/P prices (areas). Short price contraction can be seen so some quick short selling can be a option, but if the price is kept above the 232 level potential target is at $250.
Source, charts by Tradingview