Upside Potential vs. Downside Risk
This week, Tesla’s stock performance has remained dynamic, trading within critical technical levels. Here’s an analysis of Tesla’s potential upside, downside risks, and key price levels to monitor in the coming week based on the most recent market activity and technical indicators.
Upside Potential:
Tesla’s stock has a key resistance level at $412, which serves as a pivotal point for a bullish continuation. Breaking and closing above this level would signal a reversal of the recent downward trend and open the door to higher targets.
If Tesla closes above $412 , the longer term target becomes $503 , representing the five year channel top. This could be reached within three to five weeks. Holding above $412 would solidify the bullish trend and attract additional momentum driven buying.
• Actionable Strategy:
• If Tesla closes above $412 , short sellers should exit their positions.
• Consider going long, with profit-taking targets around $440 or $465 for short term traders and $503.69 for those holding for several weeks.
Downside Risk:
As long as Tesla remains below $412, the stock remains vulnerable to further declines. The primary downside target is $340, the two year channel top, which could act as a significant support level.
Critical Levels to Watch:
$380: This is the recent low settlement price and could contain daily selling pressure. However, a close below this level would increase the likelihood of a drop to $340.
$390: An intraday support level derived from trendlines dating back to October and November. A break below this level increases pressure toward $380.
Summary
Break above $412 leads to $426, $444 and ultimately $503 in three to five weeks. Bullish traders should monitor for a close above $412 to confirm the breakout.
Below $380, Tesla is likely to test $340 within to weeks. This level offers a potential buying opportunity for investors anticipating a rebound.
Tesla’s stock is at a critical juncture, and the next week will determine whether the bulls regain control or the bears push the stock further down. Keep an eye on $412 this pivotal level will dictate the trajectory for the weeks ahead.
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Disclaimer:
The content provided here reflects our personal perspective and analysis. It is not intended as financial advice. For personalized financial advice tailored to your specific circumstances, please consult a licensed financial advisor.
