Tesla’s stock price skyrocketed past 400.00 to uncharted territory and above the 386.83 ceiling that kept the bulls under control in the 2017-2018 period, sending the fast-RSI well into the overbought territory. The latter increases the odds for a downside correction, though only a decisive close below the previous high of 360.66 would raise concerns about the sustainability of the market’s upward direction.
In order to get to 360.66, sellers should breach the December 2018 peak of 380.00. If more downside follows below 360.66, the area around 342.00 may come in defense ahead of the 326.22 barrier.
Alternatively, the price could search for new record highs somewhere between the 420.00 and 430.00 psychological levels.
Regarding the medium-term outlook, this has switched to strongly positive as the market has re-activated its uptrend off the 176.65 bottom. The increasing distance between the negatively aligned 50- and 200-day simple moving averages (SMAs) also keeps optimism intact.
In brief, Tesla’s stock price is viewed as strongly bullish, though with the potential for a negative correction. Yet, any decline should stretch below 360.66 to downgrade the positive outlook.
