TESLA Stock - Can TSLA Still See $375+ ?

Summary

In this Tesla stock update, the presenter analyzes Tesla's current stock performance, noting a slight rise after the announcement of the robo-taxi launch in Austin on June 12th. Despite a 1.7% decline in daily trading, Tesla remains in a bullish trend, holding above key moving averages and within a rising channel. However, potential risks, including weakening momentum and bearish divergences, suggest caution. The stock is approaching significant resistance levels around $365–$375. While short-term targets remain positive, there are concerns about a possible reversal, with predictions for a potential future drop if bearish conditions prevail.

Takeaways

• 😀 Tesla stock saw a small rise after hours due to the announcement that Tesla plans to launch the robo-taxi in Austin on June 12th.
• 😀 Despite the after-hours rise, Tesla closed the day down by 1.7%, closing at $357 per share.
• 😀 The overall market sentiment on Tesla is still bullish, though there are some warning signs to be aware of.
• 😀 The stock price recently lost its position above the 8 exponential moving average (EMA) on the 1-hour chart, which could suggest a potential loss of upward momentum.
• 😀 The daily chart for Tesla is still bullish, with the stock price remaining above the 8 EMA, which is considered a sign of strength.
• 😀 Tesla remains within a rising channel, indicating that there’s potential for further price rises unless the stock drops below key levels like $350.
• 😀 The exponential moving averages (EMAs) on the daily chart are all in a bullish configuration, but this doesn’t guarantee that the stock will continue rising forever.
• 😀 A resistance zone exists around $365-$375, and breaching this level is crucial for further upside potential.
• 😀 There is a divergence between the stock price and the RSI (Relative Strength Index), suggesting that the stock could face resistance at higher levels.
• 😀 The weekly chart shows potential signs of a 'dead cat bounce' where the recent rally may be just a temporary correction before a larger downward movement.
• 😀 If Tesla stock experiences a strong rejection at higher levels (around $375-$385), it may fall back to retest previous support levels, especially those near $215.

Q & A

What was the main update regarding Tesla in this video?

The main update was that Tesla set a target date for the Robo-Taxi launch in Austin on June 12th, which led to a slight rise in Tesla's stock price after hours.

How did Tesla's stock perform on the day of the update?

Tesla's stock closed down by about 1.7%, at $357 per share, but saw a 1% rise after hours due to the Robo-Taxi news.

What is the significance of the 8 Exponential Moving Average (EMA) in this analysis?

The 8 EMA is used as a key indicator of short-term momentum. Tesla’s stock recently lost this level on the 1-hour chart, which suggests weakening upward momentum, though the overall trend is still considered bullish.

Why is the speaker cautious despite the overall bullish sentiment?

The speaker is cautious because of the divergence observed in the daily RSI, where the stock price made higher highs but the RSI made lower highs. This divergence signals that the stock's momentum might be weakening.

What does the concept of a 'dead cat bounce' refer to in this context?

A 'dead cat bounce' refers to a brief price recovery following a significant decline, which could indicate a short-term upward movement in a broader downtrend. The speaker suggests that the recent rise might be just that, especially if the stock faces heavy resistance at higher levels.

What resistance levels should investors watch for Tesla’s stock price?

Investors should watch the $365 level as a resistance point. If Tesla breaches this, the next targets would be $375 and $385, which are areas of high liquidity and potential resistance.

What role do the exponential moving averages (EMAs) play in the analysis?

The EMAs are crucial for identifying the overall trend. In this case, the stock is still in a bullish momentum phase, as all major EMAs are aligned bullishly, but the speaker notes that this could change if the stock loses momentum.

What does the speaker expect for Tesla’s stock in the next few months?

The speaker expects Tesla’s stock to eventually make its way back down to lower levels, possibly around $200-$215, but the timing is uncertain. This could happen within the next 4 months, depending on how the market plays out.

What is the significance of the previous resistance levels mentioned in the script?

The previous resistance levels around $200-$215 are significant because they represent areas Tesla struggled to break through. The fact that Tesla eventually broke through these levels suggests that a retest of these zones is likely at some point.

What does the speaker suggest as a strategy for cautious investors?

The speaker recommends being cautious and monitoring key technical indicators, especially if the stock approaches resistance levels like $375-$385. While the stock is still bullish, caution is advised due to potential red flags and weakening momentum.