Tesla’s share price has been on the rise over recent weeks as positive news surrounding the electric car maker finally caused a bounce from Tesla’s trend defining 200-day moving average.
Since the latter part of last month Tesla’s share price has gained over twenty percent in value, with the price testing back towards the $700.00 level. In terms of the total gains from the current yearly low Tesla Inc has bounced by around 30 percent. Tesla’s yearly opening price is around $717.00, meaning that the stock is slightly in the red for the year.
Last week’s bullish news about strong deliveries during the last quarter could help Tesla inch back into positive territory for 2021. The company revealed data which showed that Tesla Inc delivered 201,250 cars worldwide in the second quarter, marking a record for the electric-car maker led by controversial Chief Executive Officer Elon Musk.
Wall Street analysts also cheered delivery count figures, which Tesla noted should be viewed as slightly conservative, and the final numbers could vary by 0.5% or more. This is positive news for Tesla as quarterly deliveries are one of the most closely watched indicators for Tesla.
Tesla’s financial results are often seen as a barometer of consumer demand for EVs as a whole because the company is the market leader in battery-powered cars. So far no signs of imminent capitulation in Tesla’s stock price as predicted by The Big Short’s Michael Burry’s, who currently has huge bearish option bet towards Tesla and also Bitcoin.
Something else to note is that Tesla’s profitability is driven by three key factors right now, which are buying demand from the U.S., China, and Europe, tax credits, and profits from its Bitcoin holdings. Tesla’s share price could see further upside if Bitcoin starts to recover during the second quarter.
Tesla Short-term Technical Analysis
According to the four-hour time frame Tesla’s stock price has reached a key Fibonacci extension target and could be set to drop back towards the $650.00 support area.
The $690.00 level is the 61.8 percent Fib extension target of the May monthly low to the May high. A notable price gap has formed on the charts, so a correction could be due now the Fib target has been reached.
If bulls are able to overcome the $690.00 level, then a rally towards the $708.00 and $750.00 areas are then possible.
Tesla Medium-term Technical Analysis
According to the daily time frame Tesla’s stock price has formed a bullish double-bottom pattern formation after sellers failed to breach the former key swing low from March during the May decline.
Typically, double-bottom patterns are very bullish so we could see more short-term gains in the value of Tesla’s share price. The April swing-high, around $780.00 is the likely upside target.
Traders should also note that a massive head and shoulders pattern will officially be invalidated if the price reaches the April swing high.