With the recent selling pressure against Tesla Motors (TSLA) apparently subsiding, the shares have returned to the Green Favored Zone of the SIA S&P 500 Index Report from a brief dip into the yellow zone. Yesterday the shares moved up 9 positions to 124th place.
Back in October, Tesla Motors (TSLA) shares staged a major breakout over $900, punctuated by a breakaway gap, which completed a bullish Ascending Triangle pattern. An initial rally carried the shares up toward $1,250 resistance and the ensuing correction was contained above the $1,000 round number. The shares now appear to be consolidating between those two levels, digesting their previous breakout.
A current upswing suggests that accumulation may be resuming and/or selling pressure easing. A breakout over $1,250 would signal the start of a new upleg. Should that occur, measured moves resistance may next appear near $1,350 or the $1,500 round number. Initial support appears near $1,100 then $1,000.
Coming off of a huge 30-row High Pole rally, Tesla Motors (TSLA) shares were due for a correction. The recent 10-row pullback appears to be over with the shares bouncing back into an X column, and a sideways consolidation range between approximately $1,000 and $1,250 appears to be emerging.
A breakout over $1,243 to a new high would complete a bullish double top and signal the start of a new upleg with next potential resistance near $1,457 based on a horizontal count. Initial support appears near $1,061 based on a 3-box reversal.
With its SMAX score jumping to a bullish 9 on Monday from a bearish 5 on Friday, TSLA is exhibiting increasing strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
