Will Tesla Drive Higher?

Tesla more than doubled between January and mid-February. It retraced almost half that move last month and is now trying to bounce. Will the move continue?

The first pattern on today’s chart is the 50-day simple moving average (SMA), which the electric-car maker tested and held at the start of last week. The 50-day SMA is also rising for the first time since last summer. That may suggest its intermediate-term trend has turned bullish.

Second, the Relative Strength Index (RSI) has started to rise. Similar turns in January and last May were followed by upside in the share price.

Next you have the level around $166. It was monthly low for TSLA in November and held again this month.

Fourth, the stock began this week by making a lower low than Friday and then a higher high. That kind of outside candle could suggest prices are coming to life after a period of consolidation.

Finally, the calendar may provide a catalyst because TSLA’s quarterly deliveries are due in about two weeks.

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