close
close

Tesla profit: Stock rises after Q3 results

Tesla stock is in a precarious technical position heading into earnings, sitting right on an uptrend line that began at the April low, at a time when a momentum indicator was trending lower.

A break of the trendline would initially target a decline to potential support at the 200-day moving average, currently around $201.27, and then to the August 5 low of $182.

On the upside, there could be resistance between around $228.30 (where the 50-day moving average currently extends) and around $232.30 (the top of the downside gap between the March 10 intraday low. October and the high of October 11th) give the robotaxi disappointment. Additionally, the target is the September 30 high of $264.86.

Meanwhile, a widely followed momentum indicator, the Relative Strength Index, is moving in a downward trend channel as prices trend higher. This technical pattern is called a “bearish divergence” because when momentum and price move in opposite directions, momentum tends to prove forward-looking.

You may also like...