Tesla is back and looks stronger than ever. We explain in this article why Tesla’s stock price has quite some upside potential in the near and medium term. Uncoincidentally, we wrote about Tesla a month ago, saying that investors should pay attention as Tesla’s stock price arrived at a make-or-break level: Investors Should Pay Attention As Tesla’s Current Stock Price Is Critical.
Interestingly, “nobody” is talking about Tesla’s stock price nowadays. Once it was the darling of investors, and “everyone” was buying into the stock. Today, sentiment is neutral, and THAT is a great time to take positions.
Let’s review the stock price of Tesla on two timeframes: the daily and the weekly chart.
Tesla stock price short term outlook
Tesla’s short term outlook looks very juicy. The stock rose decisively above $200 today, which is where an 8-month trendline crossed Tesla’s stock price. One day does not make a market, but a market can send a strong signal on one day. That is exactly what happened today: the market sent a bullish signal.
What we want to see is at least three consecutive days of Tesla’s stock price trading above $200. In such a scenario, we see an easy ride to the $230 to $240 area, followed by $270 as a second target.
There is definitely a probability that 12-month highs at $270 will be challenged, but we first want to see how Tesla’s stock price behaves around the first resistance area of $230 – $240.
Tesla stock price long term outlook
We always base our longer term outlook on a weekly chart. The most important observation on Tesla’s weekly is the long term support line (horizontal purple line) which was tested 5 times. Recently, Tesla bounced from that support area.
The trendline which was broken today on the daily chart (above) is also visible on the weekly chart (below).
The upside potential we see is similar to what we explained on the daily chart. A ride to all-time highs near $300 is certainly in the cards, given Tesla’s strong growth recently. With this strong chart setup, and today’s breakout, we expect Tesla to outperform the market in the coming weeks.