Can Tesla's share price keep pushing higher?
Fiona Cincotta January 5, 2021 12:45 AM
Tesla hits another all time high. Does the electric car maker's impressive rally have further to go?
Bulls drove Tesla over 750% higher across 2020; a phenomenal year for the electric car maker, concluding with inclusion into the S&P500 and an all time high of just over $700 in the last session of 2020.
Tesla Chart AnalysisTesla jumped over 5% higher in early trade to a fresh all time high of $744, before retreating slightly to $730.
Tesla trades above its 100 & 50 sma on the daily chart, whilst the 20 sma has been guiding the price high. Any dips towards the 20 sma have quickly been buoyed. The upward trend shows no indication of a reversal as it continues into unchartered territory. Until the 20 sma is breached its tough to be negative on the stock.
However, it is worth noting that the RSI has reached 71.96, this is above the key 70 level which indicates over bought conditions and a pull back towards the 20 sma could occur before additional gain.
Above $550 the price action remains bullish. Bears would be looking for a move below $500 to negate the bullish trend – that would be over a 30% decline from current levels which is not impossible but looks unlikely right now.
Immediate resistance is seen at $744 today’s high, prior to $750 round number and $800.
On the flip side look for support at $695/700 high 30th December and round number, $650 the confluence of 20 sma and horizontal resistance turned support (high 8th December).
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