After spending a month trying to push past $730, on Monday, Tesla stock finally managed to achieve what it had failed for the last four weeks. The last two weeks have marked an impressive turnaround for Tesla. Midway through July, the stock was trading below $650 and in danger of breaking down. However, this week the story is quite the opposite. Yesterday’s closing price was the highest since May, which has the bulls wondering if TSLA is finally back on track.
Despite a slew of negative headlines, government probes, and irate Chinese demonstrators over the last few months, Tesla Inc (NASDAQ: TSLA) is hanging in there. Even the news that famed short-seller Michael burry is betting against the EV Automaker failed to dent sentiment. And now, after shrugging off the bad news, the price could be about to react to a positive development.
After cracking the Chinese market, Elon Musk has set his sights on India. Tesla’s long-awaited foray into the Indian market took a step closer when the Union of Transport approved four of Tesla’s models. Furthermore, a recent report says Tesla is busy sourcing parts suppliers ahead of its debut. If Musk can replicate his Chinese success story in India, the Tesla stock price could finally return to the all-time high.
The daily chart shows TSLA has climbed back above the 100-day moving average at $669.94 and the 50-day at $683.31. Furthermore, the RSI and the MACD have reversed higher, reinforcing the bullish momentum. However, overhead trend resistance is seen at $749.0. Decisive clearance of this trend targets the April high at $780.49, and beyond that, the January ATH of $900.40 looks achievable.
The bullish outlook remains relevant as long as TSLA sustains trend line support at $664. However, if the price slides beneath this level, it should extend towards the 200 DMA at $623.82. Furthermore, a breach of the 200-day would indicate the outlook has turned extremely bearish.
Tesla Share Price Chart
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