Tesla Is All Charged Up But Searching for Direction

Tesla Is All Charged Up But Searching for Direction

Cathie Wood put a $2,600 price target on Tesla, calling for a new review of the chart data and some advice for traders.

I looked at Tesla (TSLA) on June 12, 2024 and wrote that “Prices could make a burst to the upside at any time but without signs of accumulation (buying), I do not currently see a sustained rally getting underway in the near-term.”



The timing of my updates on any security are driven by the price action. Not much has happened with TSLA in the past week, but let’s check the air pressure in the tires again as investment manager Cathie Wood put a $2,600 price target on Tesla.

In this daily bar chart of TSLA below, I can see that prices have remained in a sideways move the past six weeks or so. TSLA is trading between the bottoming 50-day moving average line and the declining 200-day moving average line. The daily On-Balance-Volume (OBV) line has moved sideways since late January. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line since early May.

In this weekly Japanese candlestick chart of TSLA below, I see a “soft picture.” Prices trade below the declining 40-week moving average line. The weekly trading volume has declined the past three months suggesting reduced investor interest. The weekly OBV line has edged higher the past three months and that does not “fit” with the price action. The weekly MACD oscillator has inched higher but still remains well below the zero line.



In this daily Point and Figure chart of TSLA below, I can see a potential upside price target in the $235 area. A trade at $176 could turn this chart bearish.

In this weekly Point and Figure chart of TSLA below, I can see an upside price target in the $315 area.

In this second weekly Point and Figure chart of TSLA below, I used close-only price data. Here, the chart shows a more modest price target of $245 and a trade at $168 could weaken the picture.



Bottom line strategy: Could shares of TSLA rally to $2,600? Maybe. Maybe not. Maybe a reversal split can do it? A decline to $176 or lower could weaken shares of TSLA so traders should remain cautious.

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