Tesla Technical Analysis – Looking more bullish

Tesla’s share price has been treading water above the $600.00 level this week, ahead of next week’s second-quarter earnings and investor call. The electric car maker has anchored itself above its 200-day moving average, despite extreme volatility in U.S. stocks markets.

This week Elon Musk took part in a Bitcoin conference with Square’s Jack Dorsey and Cathy Wood from Arc Capital. Musk talked up the prospect of Bitcoin’s improving carbon footprint and how Tesla are getting ready to accept Bitcoin again.

During Tesla’s earnings conference call, investors will be looking for updates on Tesla’s Bitcoin holdings, and its position towards more Bitcoin purchases. They will also want to hear about competition in China, the new P5 sedan, the company’s coming model-Cybertruck.

Some caution is advised, as Tesla reports its deliveries before its financial results, giving investors a reason for excitement as earnings approach. Estimates for second-quarter profits have risen from roughly 95 cents a share to about 96 cents after the company delivered more than 200,000 vehicles in a quarter for the first time.

Tesla stock has usually risen in the week before earnings, so bears beware. For the record Tesla’s stock has advanced in eight of the 12 quarters reported, and has been outperforming fund managers favourite, the S&P 500.

Watch out for data surrounding carbon credits, as this is a major source of income for Tesla based on previous earnings report. We should also consider that Bitcoin started to collapse in mid-May and failed to recover to new all-highs.

Tesla Short-term Technical Analysis

According to the four-hour time frame Tesla’s stock price has broken past a key trendline and is starting to consolidate above the $600.00 level ahead of its next major move.

In the most likely scenario Tesla’s stock price breaks above the $685.00 level and heads towards $800.00. If Tesla’s stock price is rejected from the $685.00 level we should expect another test of $600.00.