Tesla Inc. - (TSLA) - January 4, 2022 (Daily Stock Report)

by SIACharts.com

 

 

Tesla Motors (TSLA) shares soared back up the rankings in the SIA S&P 100 Index Report yesterday, jumping 44 positions to 4th place. The shares had weakened in December as founder Elon Musk sold some of his shares in a planned program, but roared back to life yesterday, popping 13.5% after the electric vehicle producer announced strong Q4 sales numbers.

It has been a roller coaster ride for Tesla Motors (TSLA) shares over the last six months, but through these ups and downs, some very strong technical levels and patterns have emerged. Back in September, the shares completed a bullish Ascending Triangle pattern with a breakout over $75, then confirmed the start of an upleg with a breakaway gap breakout over $900 in late October. Following a high volume advance up toward $1,250, the shares dropped back as volumes dried up. In December, TSLA successfully retested its previous $900 breakout point as new support and since then, have been bouncing back.

First, the shares regained $1,000 and then regained their 50-day average which has reversed polarity to become support near $1,050. Yesterday, the shares snapped a downtrend line with a breakaway gap up through $1,125 (which reverses polarity to become initial support), on a jump in volume that signals renewed investor interest.

Initial upside resistance appears at the November peak near $1,250, where a breakout would confirm the start of a new upleg. Should that occur, measured moves from previous trading ranges suggest potential resistance near $1,300, $1,450 and $1,600.

 

Back in October, Tesla Motors (TSLA) shares, which had started to accelerate upward in August, broke through their February peak near 888 to a new all-time high and then soared up toward $1,250 before staging a significant correction in December. The retreat, however, was contained above 900 and its previous breakout point, which indicated that the underlying long-term uptrend remained intact Yesterday, the shares roared back upward, completing a bullish Double Top breakout, which called off the previous bearish double bottom pattern.

Currently, the shares are approaching their November high near $1,244. A breakout over that level would complete a bullish spread double top pattern and confirm the start of a new advance. Should that occur, horizontal counts suggest next potential resistance may appear near $1,295, then $1,545 on trend. Initial support appears near $1,104 based on a 3-box reversal.

With a bullish SMAX score of 6, TSLA is exhibiting 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.

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