TSLA has been in a descending Triangle Pattern which in theory has a greater odds of breaking to the down side eventually. nHowever, it is looking like the bulls will win this time. RSI is now well above 50, signaling strength. Plus we have a strong close right at the trendline "resistence" yesterday.
A breakup looks very likely today and I am expecting it to reach 764-780 in the coming weeks. However, earnings are coming up shortly on 21 July (perhaps market is expecting a positive earnings surprise but bear in mind there are always risks involved trading into earnings).
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
If you take a look at the charts, it's actually more of a slightly ascending triangle/wedge, rather than a descending one, because the lows increased from 540 to 545 when Tesla had big drops before.
Juliac
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@TeenInvesting, you are right though it' s not exact science, the difference is barely 1% so it is essentially still more of a right angle triangle then an ascending one. Hopefully we can see an eventual the break up as the odds of such a formation breaking towards the "flat/horizontal" side of the triangle tend to be higher. At the moment TSLA still have strong support at the 500-540 region.
TeenInvesting
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@Juliac, I agree. Personally I don't care too much if Tesla comes back down to $500, cus my cost basis is between $40-$50 (don't remember the exact number) cus I've been buying since 2018. So I'm really in it for the long run
Juliac
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@TeenInvesting, Oh my! Happy for you! You would definitely want to hold it for the longer haul indeed. And perhaps even add a little should it come back down to 500. :)
TeenInvesting
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@Juliac, I probably will add if it does drop that far down!!!