The share price of Tesla seems poised to appreciate towards the psychologically significant resistance level at 700.00 over the med-term. The prominence of this level is derived from the fact that it is positioned remarkably close to the 23.6% Fibonacci retracement.
The latest upswing originated from the 38.2 per cent Fibonacci. The reinvigorated bullish commitment stems from the fact that this rebound also occurred from the 200-day MA (in orange). Not only that, but the price action also appears to be developing a Double Bottom pattern, which entails mounting bullish pressure.
However, market bulls should watch several key developments. First, the Stochastic RSI indicator indicates peaking buying pressure, which could potentially imply that the upswing may be interrupted soon. Moreover, the price action would also have difficulties in breaking out above the 50-day MA (in green) and the descending trend line (in red).
The latest upswing originated from the 38.2 per cent Fibonacci. The reinvigorated bullish commitment stems from the fact that this rebound also occurred from the 200-day MA (in orange). Not only that, but the price action also appears to be developing a Double Bottom pattern, which entails mounting bullish pressure.
However, market bulls should watch several key developments. First, the Stochastic RSI indicator indicates peaking buying pressure, which could potentially imply that the upswing may be interrupted soon. Moreover, the price action would also have difficulties in breaking out above the 50-day MA (in green) and the descending trend line (in red).
