Stock of the Day: Tesla

Today’s stock of the day is Tesla, which is currently trading at a very interesting technical location.

The price is positioned exactly above a crucial horizontal support around $385, marked with blue on the chart. This level has been tested multiple times since November, which makes it a very important technical reference for the market.

At the same time, Tesla is trading below two dynamic resistance lines marked with green. These lines are currently limiting the upside and compressing price action between resistance above and support below. This creates a classic decision point scenario.

If the price manages to break above the two green resistance lines, that would generate a proper signal to buy and indicate that buyers are regaining control of the trend.

On the other hand, if the price breaks below the blue support at $385, that would trigger a sell signal and suggest that sellers are taking control of the market.

So Tesla is currently sitting exactly at a technical crossroads. The next breakout from this structure will determine the direction of the next larger move.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-tesla-29