Tesla’s stock resolved a bullish pennant formation on the upside on Monday in the four-hour chart, strengthening its March uptrend to a fresh record high of 899.88 before closing slightly below its previous peak.
The bulls may keep pressuring for a close above the 900 level in the short run as the upward-sloping RSI has yet to confirm overbought conditions after violating its downward move. The MACD, although below its red signal line, is trying to regain some lost ground above zero, adding to this optimism.
A sustainable move above the 900 mark could stall around the 161.8% Fibonacci extension of the latest pullback, at 934. Should bullish pressures persist, the door would open for the critical 1,000 number.
Otherwise, a negative correction may bring the 860 barrier back into view. Below that, the stock may seek support around the 20-period exponential moving average (EMA) and the triangle’s bottom trendline at 832.00, while the 50-period EMA at 770 could be the next spot to watch if the price decelerates below 800.
In brief, Tesla’s stock seems to have some bullish fuel in store, with traders likely waiting for a confirmation above 900. Alternatively, a pullback towards 860 could be expected.
Note that Tesla Inc. is expected to release a record earnings report for the final quarter of 2020 on Tuesday after the market close.
