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by Darius Anucauskas

Tesla Stock Breaks Key Resistances

After trading within a falling channel formation for about half a year, the Tesla Inc stock (NASDAQ: TSLA) finally managed to break above the upper side of that pattern. On Monday, TSLA opened with a gap to the upside, automatically placing itself above the downside channel. Yesterday, the stock continued with its journey north by opening with another upside gap, above the 234.61 barrier, marked by the highest point of June. Such a move might have cleared the path to some higher areas, which could be met in the short run. This is why we will stay positive for now.

A further push higher, away from the 234.61 zone, could send TSLA to the next possible resistance area, at 258.18, marked by the high of May 6th. This may be the area where the share price could get held temporarily from accelerating further. We may even see a small throwback, with the stock correcting slightly to the downside. That said, as long as the Tesla stock remains above the upper side of the previously-discussed falling channel formation, we will remain somewhat positive. Another move higher and a break of the 258.18 hurdle could open the door for TSLA to test the 200-day EMA and the 274.70 mark, which is the high of April 17th.

Taking a quick look at our oscillators, the RSI and the MACD, we can see that both of them started pointing to the upside. In addition to that, the RSI is above 50 and the MACD is above its trigger line, while sitting in the positive territory. The two indicators support the above-discussed scenario for now.

Alternatively, if the stock falls back below the upper side of the channel and slides below the 215.31 hurdle, marked by the low of June 21st, this might stop potential new investors from buying the stock at that time. They might wait it out and jump into it at later stage. The stock could then move further down, potentially bypassing the 207.30 obstacle and hitting the 191.73 zone, which is marked near the high of May 30th and by the low of June 5th. If the stock is not able to attract new investors even at that price, TSLA might drift lower again, where it could meet the 176.77 area, marked by the low of June 3rd.

Tesla daily

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