Tesla sees breakthrough and consolidation: is it ready for the next step soon? – Tesla Motors (TSLA)

Tesla Inc. (NASDAQ: TSLA) The shares are trading higher on Monday after the stock received an upgrade to Buy from Jefferies. The stock received a price target of $ 850, higher than the previous target of $ 700.

Tesla was up 2.10% to $ 713.76 in the last check on Monday.

Tesla Daily Charts Analysis

• Shares have broken away from a pennant pattern and are consolidating, perhaps looking to see another milestone in the weeks to come.
• The stock is trading above the 50-day moving average (green) and the 200-day moving average (blue), indicating that sentiment towards the stock is likely bullish.
• Each of these moving averages may be a possible support area going forward.
• Price has been condensed tighter until it breaks above resistance, now price consolidation could be ready for another push when above average volume moves into the stock .
• The Relative Strength Index (RSI) rose and now stands at 64. This shows that the stock has been under more buying pressure than selling pressure in recent weeks.

What’s next for Tesla?

Bullish traders are now seeing consolidation and soon hope that the stock will rise with above average volume. The bulls would like to see the next step after consolidation.

Bears would love to see the action drop and fall below the model’s support line. Bears also want to see a push below moving averages for a potential change in trend and sentiment.

Photo: Courtesy of Tesla