Stock of the day: Tesla

Tesla’s impressive sales figures for the first half of the year have caused a bullish trend in its stocks, surpassing market expectations. However, the company’s shares are currently stuck in a key technical resistance region, defined by two primary lines: a red downtrend line that traces lower highs and the upper edge of a flag pattern shown in black.

The flag pattern represents the correction that started at the beginning of this year. As it stands, Tesla’s stock price is at the intersection of these two resistance lines, a challenging position to break free from.

If the price manages to break through these resistances, it could potentially target the orange resistance level at $315 per share, a value last seen in August and September 2022. However, as the broader market continues to trend downwards, this could adversely impact Tesla’s momentum, causing a bounce back from the current resistance levels.

The immediate support in such a scenario lies at $240 per share, denoted by a green line on the chart. Given the current market conditions, it seems more likely for Tesla’s stock to move in this second scenario, at least for the short term.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-tesla-3