Tesla’s Pullback: Is the Rally Over or Just Paused?

$Tesla (TSLA.US)$ recent pullback from its all-time highs has raised questions about the sustainability of its rally. This analysis breaks down the reasons behind the correction and highlights the critical $385 support level that could determine the stock's next move.

Tsla Day chart

Technical Analysis

1. Breakout Levels: Previous all-time highs around $413, $400, and $384 served as key resistance levels. Price has retraced to test $413, a significant support level given by previous all-time high

2. However, sometimes price might do a deeper pullback. In this case, Tesla has various highs that resulted in a significant turning points and the lowest price of the key turning points is around $385.

3. Support and Implications: If $385 holds: Price may consolidate above this level. Indicates strong buyer interest and could act as a launchpad for retesting $480. If $385 fails: The breakout above the previous highs is invalidated. Downward momentum could accelerate, with potential supports at $350 or lower.

4. Trend Strength: Despite recent correction, the weekly trend remains bullish if the support holds. RSI at 78.47 suggests overbought conditions earlier but has room to cool off during consolidation.

5. Monitor price action near $385. Look for strong bullish candlestick patterns or volume support or a price breaks below $385.

Short-term trading with DLCs:

Bullish view with long DLCs $TESLA 3xLongSG261006 (TSYW.SG)$

Bearish view with short DLCs $TESLA 3xShortSG261204US$ (TSUW.SG)$

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Disclaimer:

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

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Binni Ong

SGX Academy Trainer | International Speaker | Angel Investor | Automated System Developer | Made first pot Gold at 18

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