Shares Gained 27% Last Week to Move Into Positive Territory for 2024
Source: TradingView.com
Key Takeaways
Tesla shares surged 27% last week, boosted by a better-than-expected second-quarter deliveries report and building anticipation ahead of the company’s Robotaxi Day next month.
Last week, Tesla shares closed above both the 50- and 200-week moving averages and a prominent 12-month downtrend line on the highest trading volume since mid-February, indicating buying conviction among market participants.
Tesla shares may encounter resistance on the weekly chart at $299.29, $384.29, and $414.50, while potentially finding support around $205.
Tesla (TSLA) remains in the spotlight after a 27% surge in the EV maker’s share price last week drove the stock back into the green for the year. The rally followed a better-than-expected second-quarter deliveries report on Tuesday and building anticipation ahead of the company’s Robotaxi Day next month.
Amid the strong recent price momentum, we use technical analysis to identify key areas on Tesla’s weekly chart to watch out for.
Breakout Above Key Chart Indicators
Tesla shares have been tracking higher since the completion of a piercing pattern in late April. Typically, technical analysts interpret this two-bar candlestick formation as signaling a potential reversal from a downward trend to an upward trend.
Last week, the stock closed above both the 50- and 200-week moving averages and a prominent 12-month downtrend line on the highest trading volume since mid-February, indicating buying conviction among market participants. Moreover, the relative strength index (RSI) nears overbought territory, confirming the strong recent price momentum.
Levels to Watch Amid Further Upside
If the stock continues to climb higher, investors should focus on three key chart levels.
Firstly, it’s worth watching how the price responds to last year’s high at $299.29, an area that also sits in close proximity to two prior price peaks that formed in August and September 2022.
A close above this region could see Tesla shares move up to the next…
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