Tesla Climbs Higher In This Charged Up Trend: Here's What To Watch

Zinger Key Points
  • Tesla is making a consistent series of higher highs and higher lows as the stock continues in its uptrend.
  • If Tesla closes Tuesday's session near the high-of-day, the stock will print a bullish kicker candlestick.

Tesla, Inc TSLA was spiking up over 6% higher on Tuesday, despite two analysts lowering their price targets on the stock.

Jefferies analyst Philippe Houchois maintained Tesla with a Buy rating and lowered the price target from $350 to $180. BofA Securities analyst John Murphy maintained Tesla with a Neutral rating and lowered the price target from $135 to $130. While Murphy’s price target is in line with where Tesla is currently trading, Houchois’ target suggests about a 40% upside for the stock.

Tesla was heavily beaten down in 2022, closing the year down 65%. Between Dec. 1 and Jan. 6, Tesla suffered a particularly bearish period, declining almost 50% to reach a two-year low of $101.81.

After reaching the new low, Tesla reversed to the upside and has recently confirmed a new uptrend is in the cards.

An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Tesla Chart: Tesla confirmed a new uptrend on Jan. 11, when the stock printed a higher high of $125.95. The day prior, Tesla had negated its downtrend by printing a higher low of $114.92.

  • On Jan. 13, Tesla came close to negating the uptrend but found a local bottom at $116.55, which caused the stock to print another higher low. On Tuesday, Tesla was popping up higher to print another higher high to confirm the uptrend is intact.
  • Technical traders may have seen a reversal coming for Tesla because, between Dec. 27 and Jan. 6, the stock had developed bullish divergence on the daily chart. Bullish divergence occurs when a stock makes a series of lower lows but its relative strength index (RSI) makes a series of higher lows.
  • The bullish divergence on Tesla’s chart has slowly started to correct with the stock’s rising prices. Tesla’s RSI is still measuring fairly low, however, at about 44%, which suggests the stock could continue within its uptrend for some time before becoming overbought.
  • If Tesla closes the trading day near its high-of-day price, the stock will print a bullish kicker candlestick, which could suggest higher prices will come again on Wednesday. If the stock closes the trading day with a significant upper wick, the next temporary top is likely in and Tesla could fall lower.
  • Tesla has resistance above at $139.53 and $152.19 and support below at $123.80 and $110.07.

tsla_jan._17.png

Read Next: Jim Cramer Says These Sectors Might Breed Market Pessimism

Photo: courtesy of tesla.com

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Long IdeasShort IdeasTechnicalsTrading Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!