Elon Musk continues his ascent on the ladder of the top richest men in the world as Tesla’s share price continues its meteoric surge to new record highs. Today’s intraday high of 1794.99 marks the highest the Tesla share price has ever attained. Even though the price has pulled back from these highs, there is no ruling out another push towards this level.
Tesla’s share price surge means that Tesla is now the world’s most valuable automaker and the 10th largest company in the US, doubling its share price at a time most companies are struggling with the fallout of the coronavirus pandemic. This is all coming on the back of a $3000 price reduction on its Model Y Performance crossover version as well as the Model Y Long-Range Dual Motor Basic version.
The question many are asking is this: At nearly $1800 per share, is Tesla share price worth its price tag, or are market speculators merely propping up the stock to suck in the dumb money?
Technical Outlook for Tesla Share Price
A look at the daily chart shows that the rise in Tesla share price has been very steep. In technical analysis, such steep ascents usually do not last. Some believe that speculators are trying to drive up Tesla share price to get it a listing on the S&P 500 and therefore attract more buyers at higher prices. This is usually the last event before a selloff, and we may not be far from that selloff point as the early birds take profit.
The daily candle on the day is now showing a hanging man candle; a pretty ominous candle for those still buying. If the candle ends the way it is, a bearish candle tomorrow increases the likelihood of a cooling in the overheated prices as early birds take some profit off the table. This could allow for a pullback to 1302.22 (161.8% Fibonacci extension from the 18 February to 16 March move). 1183.76 and 1101.29 are also possible downside targets.
On the flip side, 1882.95 is the 261.8% Fibonacci extension level which could be an upside target from present levels. However, dip buying opportunities cannot be ruled out, with the various downside levels representing possible dip buying points.