Tesla shares: Correction dampens upward trend – UBS-Column

Review: With the breakout of the previous record high of USD 193.92, another massive rally set in motion for Tesla shares in June, which overshadowed everything that had gone before: starting from the low in March at USD 70.10, the value exploded and reached a new all-time high at USD 502.14 in September after a performance of 600%. This high was immediately used for profit-taking, and stocks subsequently fell just below the USD 358.99 support. However, the bulls countered the sell-off immediately and drove the value above USD 450.00. Since then, Tesla shares have been oscillating sideways in an ever narrowing triangular formation that underlines the current war of direction.

Outlook: In the short term, Tesla shares now have a chance to break the top of the triangle. However, the strong hurdles are still waiting for the value.

The long scenarios: In the event of a rise above the interim high of last week at USD 448.88, the triangle would be abandoned and a long signal would be active. However, the value would then have to rise above the interim high at USD 461.94 and the hurdle at USD 466.00. Only then would the way to the all-time high at USD 502.14 be clear. Above that, the next key target is USD 560.00.

The short scenarios: Already selling below the intermediate low at USD 406.05 could tip the rise and cause an attack on the underside of the triangular formation at around USD 385.00. Below that, only the support area at USD 358.99 could break down to the holding level stay at USD 273.00.

Disclaimer: The text is a column of the UBS. 4investors is not responsible for the content of the column and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

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At a glance – chart and news: Tesla Motors


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