Tesla's Stock Breaks Out On Deliveries Beat: What's Next?

Tesla Inc TSLA reported a record 201,250 deliveries beating the estimate of 200,000. For the first quarter of 2021, Tesla delivered 180,338 vehicles.

Prior to Tesla printing its first-quarter earnings back on April 26, Wedbush's Daniel Ives said that if Tesla were to announce it could deliver 900,000 vehicles this year, it would be “the next step in the stock going toward $1000." Friday's announcement puts the electric vehicle on the right track to reach the goal.

$1,000 would mean a new all-time high for Tesla and the stock is trading 47% below the level. Although Tesla’s stock has many resistances before the $1000 level it looks ready to make a big trek north.

The Tesla Chart: On June 23, Tesla was able to close directly on a downward sloping trendline of a triangle and printed a big engulfing candlestick, which gave bulls the indication higher prices were on the horizon. The downward trendline had been holding Tesla down since making a Jan. 25 all-time high of $900.

On June 24, Tesla gapped up and opened above both the trendline and a resistance level at $660 and then traded sideways. The break up through resistance and subsequent sideways action allowed Tesla’s stock to form a bull flag pattern, with the pole created between June 22 and 24 and the flag between June 24 and Thursday.

On Friday morning, the bull flag was recognized and Tesla's stock broke up bullishly from the pattern on high volume.

Because the length of the pole in the bull flag is about 13%, the measured move gives bulls a target of about $755.

Tesla is trading above both the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day EMA, both of which are bullish indicators. It's also trading above the 200-day simple moving average, which indicates overall sentiment in the stock is bullish.

Tesla has support below at $660 and $628. It has resistance above at $707 and $745.

TSLA Price Action: Tesla's stock trades up 0.88% to $684 at publication time.