Get Tesla Inc. Reportstock remained unchanged last week, although a pronounced one-day drop of 2.9 percent on Friday shifted the stock''s short-term forecast.
The bulls wanted to extend the stock''s winning streak to four days on Thursday, as shares increased by more than 5.5% at one point. However, with the overall market decline putting investors at risk, Tesla''s stock has decreased by 0.9 percent.
The early rise came after the company received solid sales statistics out of China, which sounded to be a relief for many investors as a result of Shanghai''s strict lockdowns.
UBS analysts upgraded the stock to a buy rating and assigned an $1,100 price target. Catalysts included a record-breaking order book and the addition of Tesla''s new Austin and Berlin factories.
Cathie Wood has been a Tesla stock buyer, but the bulls will need more than Ark & Co. to step up to the plate if they want to see a sustained rise from here.
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Tesla stock has advantages and disadvantages. On the plus side, the stock performed a fantastic job breaking out over that heavy downtrend (blue line), holding $700, and putting in a higher low. These are all three great positives.
Tesla has also dropped from last weeks to the very end, but the stock has been pushed below the $750 to $800 area, which was previously supported.
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Bulls do not want that prior support turn into current resistance, and that''s pretty much what we''re working to figure out right now.
If Tesla stock had remained above the 10-day moving average, then that would have been ideal for the bulls. However, it must remain above $700. This year''s increase has been crucial.
Below $700, the possibility that the stock returns to this year''s low of around $620.
Clearing $795 gives the bulls the advantage on the upside.
It also boosts Tesla stock by putting it above this month''s high. That''s putting the stock back above previous assistance. It might give the bulls a major boost, but it''s also opening up more upside.
The 38.2% retracement would be the next upside target at $825. That''s followed by the extremely significant and very widearea of $870 to $920.
In this zone, we find a variety of key measures, including the 50-day, 200-day, and 21-week moving averages, along with the 50% retracement of this quarters range.
Before a rally to this extent would occur, Tesla stock might get there, but $1,000 might be reinstated, but I expect some sort of pause in the first area ($870 to $920).
