We last wrote about Tesla (TSLA) on Feb 23 and we said: "TSLA could test nearby support in the $250 area. Assuming support holds, we could see a $250 to $275 trading range evolve before TSLA decides on its next sustained direction." Now that we have had a few weeks to see some more price action we can update our view.
In this updated daily bar chart of TSLA, below, we can see that prices indeed pulled back and tested support around $250. Support did hold and prices stabilized in the following weeks and recently began a new up-leg. TSLA is back above the rising 50-day moving average line. The On-Balance-Volume (OBV) line did not show much softness as prices corrected in late February and early March. Now the OBV line has broken out to a new high for the move up confirming the new price high. The Moving Average Convergence Divergence (MACD) oscillator turned up to a fresh outright go long signal in mid-March.
In this updated weekly chart of TSLA, below, we can see that prices have broken above the highs of 2016, 2015 and late 2014. Prices are above the rising 40-week moving average line. The weekly OBV line is pointed up and the MACD oscillator is very bullish.
In this Point and Figure chart of TSLA, below, we can see the breakout at $288 and the long-term potential price target of $411.
Bottom line: If you are comfortable risking below $280, you can go long TSLA here and on strength. The $400-$410 target maybe be reached sooner than expected.
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