As we focus on Tesla Stock we see that after making an all time high of $387.60 on the 22nd June, Tesla stock has fallen dramatically in the last few weeks hitting a low of nearly $303 in the days trading. This fall taking almost $80 off the value of the stock in a relatively short amount of time.
If we zoom out and look at the dramatic rise of Tesla Stock we can see it hasn’t really shown any signs of slowing down since the beginning of the year. This recent dramatic fall is out of character for this company and it gives us an excellent opportunity to buy this stock at a bargain price.
Yesterday and today price has consolidated into the demand zone created in the middle of May. This area represents fantastic value for anyone wanting to purchase Tesla stock to ride the next leg higher.
We also have the relative strength index showing over sold conditions adding further weight to the fact we may see a further push higher in the coming weeks.
A daily candle close above the trend line shown on the short also adds further confirmation of a buy trade.
Tesla Technical Analysis
With an entry when the candle closes above the trend line shown on the chart we have the prospect of an excellent risk reward trade. Stops down below the demand area at around $300 and a a short term target of $350 we have a small risk for a high reward. Although I have chosen a target of $350 this stock has the potential to go even higher. With earnings expected at the beginning of August, this stock should be on everyone’s radar.
Trade stocks with Plus500 and receive £20 with no deposit required.
For the best charting software available on the web open a free account with www.Tradingview.com