Tesla: Potential Breakout Coming?Tesla has consolidated for more than two months, and some traders may think a breakout is coming.
The first pattern on today’s chart is the $436.23 level, a previous record weekly close from December. The EV maker has fluctuated on either side of that price since late September without backing down. Is long-term resistance fading?
Second, TSLA has made higher highs and mostly higher lows since October 10. (The only exception came on October 23 following quarterly results. Even then, prices quickly recovered from the opening drop.)
Third, the 8-day exponential moving average (EMA) has stayed above the 21-day EMA. That may reflect a bullish short-term trend.
Next, Wilder’s Relative Strength Index (RSI) has moderated from above 80 while staying over 50. That may suggest an overbought condition has faded without direction turning south.
Finally, TSLA is an active underlier in the options market. (Its average volume of 2.3 million contracts per session ranks second in the S&P 500, according to TradeStation data.) That could help traders take positions with calls and puts.
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