Tesla share price is surging this Tuesday as renewed risky sentiment has allowed the US markets to experience a post-Easter renaissance. Tesla share price is up by 13.6% in premarket trading as the company seeks to reduce costs by asking its landlords to consider making some reductions on their rent payments.
Citing an email reportedly sent to its landlords on the issue, a report from The Street on the matter says that Tesla indicated it wanted to make some “strategic decisions to ensure the company’s long term success and growth” as a reason behind the move. Tesla share price had already had a positive response last week as it cut salaries and furloughed thousands of hourly-pay workers in a bid to cut costs.
Tesla share price continues its ascent and now tests the 650.51 price level which also doubles as the 50% Fibonacci retracement level from the swing low of 5 December 2019 to the swing high of 4 February 2020. A breakout above this level requires two successive daily candle closing penetrations above this level. Confirmation means that Tesla share price will have the liberty to target the 667.92 price level, which serves as the lower border of the resistance zone above and is marked by the highs of March 9 and 10. The upper border of this zone is marked by the 6 March 2020 high at the 705.83 price level, and a break of this zone continues the ascent towards the 726.57 price area, where the 38.2% Fibonacci retracement level lies.
Conversely, if Tesla share price fails to breach the 50% Fibonacci price level, this could lead to a retest of 599.38 (22 January and 13 March 2020 highs). A breakdown of this price level opens the door towards the 14/21 Jan and 25 March highs at 549.98. However, 574.44 (61.8% Fibonacci retracement level) may constitute a barrier that needs to give way before the latter can be achieved.