Tesla Stock Surges 27% Last Week, Enters Positive Territory for 2024
Investors in Tesla (TSLA) had reason to celebrate last week as the electric vehicle maker’s shares soared by an impressive 27%. This surge not only marked a significant increase in Tesla’s stock price but also propelled the company back into positive territory for the year 2024. The rally was fueled by a combination of factors, including a better-than-expected second-quarter deliveries report and growing anticipation ahead of Tesla’s upcoming Robotaxi Day.
Key Takeaways
- Tesla shares surged 27% last week, driven by positive second-quarter deliveries and anticipation for Robotaxi Day.
- The stock closed above key moving averages and a downtrend line, signaling strong buying conviction.
- Resistance levels to watch are at $299.29, $384.29, and $414.50, with potential support around $205.
Technical Analysis Highlights
Technical analysis plays a crucial role in understanding the recent price momentum of Tesla’s stock. The completion of a piercing pattern in late April signaled a potential reversal from a downward trend to an upward trend. Last week, Tesla’s stock closed above both the 50- and 200-week moving averages, as well as a significant 12-month downtrend line, on the highest trading volume since mid-February. The relative strength index (RSI) nearing overbought territory further confirmed the strong price momentum.
Levels to Watch for Further Upside
As Tesla’s stock continues its upward trajectory, investors should keep an eye on key chart levels that may impact its movement. The $299.29 mark, representing last year’s high, is an area of interest as it aligns with previous price peaks. A breakout above this level could lead the stock towards the next resistance at $384.29, where selling pressure may be encountered near the April 2022 swing high. Breaking past this level could set the stage for Tesla to reach a new all-time high above $414.50.
Monitoring Support Levels During Pullbacks
Given the stock’s proximity to overbought conditions, it is essential to identify potential support levels in case of a pullback. A retracement is likely to find support around $205, where a horizontal line connects peaks and troughs dating back to February last year. This level also forms the neckline of an inverse head and shoulders pattern on the daily chart.
It is important to note that the comments, opinions, and analyses expressed in this article are for informational purposes only. Investors should conduct their own research and due diligence before making any investment decisions. As of the date of writing, the author does not own any Tesla securities.
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