Tesla's Stock Gains Ground, Looks Set To Tour North

Tesla Inc TSLA began delivering its Model Y Standard Range RWD version in China on Thursday, according to a report by InsideEvs. It's unknown whether the entry-level vehicle will eventually be shipped to the U.S. and European markets in the future.

The standard range battery version has a range of just 236 miles, which may not make it the right fit for many North American or European drivers. Tesla may be working on a long-range version of its Model Y with a range of about 400 miles, however, which would give customers increased range at a lower price point than Tesla’s other models.

See Also: Tesla China Team Gets Elon Musk's Praise As Giga Shanghai Said To Have Begun Mass-Producing Model Y

The Tesla Chart: Tesla has been trading in a symmetrical triangle since April 14. On May 19, when the stock put in a low at $546.98, Tesla began trading in an uptrend, making higher highs and higher lows. This created the lower ascending line of the triangle.

On Aug. 17, Tesla’s stock dropped down to test the lower trendline and held above it. The stock then retested it the following three trading days and on Tuesday bounced up toward the top trendline, which Benzinga called out on Monday.

On Tuesday and Wednesday, Tesla tested the upper descending trendline of the triangle and rejected it as resistance. This caused the stock to make a lower high which is expected as it tightens toward the apex of the triangle.

Tesla’s stock will reach the apex on about Sept. 17 and both bulls and bears can expect Tesla’s stock to break up or down from the triangle before then. When Tesla’s stock breaks from the triangle traders will need to watch for increasing volume on the move to be sure the pattern was recognized.

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

• Bulls want to see big bullish volume come in and push Tesla up through the top trendline of the triangle. If Tesla’s stock can gain the trendline as support it has room to move up to $720 and then $725.
• Bears want to see big bearish volume drop Tesla back down to the bottom trendline of the triangle, which would put the stock back below support at $700 and the eight-day and 21-day EMAs. If Tesla’s stock breaks down from the triangle, it has support at $671 and $650.