Tesla (TSLA) Stock Analysis: price ready for a breakout

• Tesla stock is up by 169% from its 52-week low.
• Tesla stock surged 9.22% in a week, and 20.34% in a month but declined by 9.09% in a year.
• Tesla has significantly increased its tally of Revenue and net income.

Market capital of TESLA – $4870.912 Billion

The current Market price of TESLA- $ 274.39

Stock Overview

In the previous session, the Tesla stock closed the day in the red as the price declined by $1.65 (0.60)%. The stock has been in an uptrend since 18 August, as the price has formed a morning star pattern on a daily time frame and has surged over 20% since then. The stock has also formed one gap on 11 September when the price has surged 10% in a day.

The price of Tesla stock has recovered from its 52-week low level of $101.81, and till now the price has jumped over 169%. The result of which the investor’s money doubled in just 9 months.

The price is facing rejection from the gap area which was created on 20 July, where the price has fallen 9.74% intraday.

The revenue of the company has marginally jumped from $7.00 billion in 2016 to $81.46 Billion in 2022, a rise of a whopping 1063% in just 6 years, also the net income of the company has risen from $ (-674 million) to 12.58 Billion. The stock reflected these strong fundamentals numbers on the chart as the stock has surged over 2000% in 6 years.

The total debt of the company has declined significantly over the years as the debt which was standing at $14 billion in 2019 is now standing at $5.75 billion, a decline of over 60% in 3 years.

However, the good news about the company is that the net cash of the company is more than the total debt which means that the company has a positive net cash.

Technical Analysis of Tesla (TSLA)

Tesla’s price has formed a symmetrical triangle pattern, where the price is currently trading near its trendline resistance. The price seems to form an inverted Head and Shoulder pattern where the neckline is drawn as support on the chart. The trendline resistance is currently present near the area of $287.

The trendline support of the symmetrical triangle pattern is currently present near the area of $225, and the support for the stock is visible near the level between $211-$217 and the resistance of the stock is currently visible near the level $312- $317. The price has also formed a W-kind pattern on the daily chart

The stock is trading above the important EMAs of 50 and 100 which is a bullish sign for the stock also the slope of the EMA is upward which supports the above statement. The Relative Strength Index (RSI) is at 61.65 which indicates that the price currently has a strong momentum on the upside which is good for bulls.

The relative Strength Index has reversed from level 30 which indicates that the price has bottomed out at those levels and the possibility of trend continuation i.e. bullish trend is higher.

The price has beautifully respected the EMAs and bounced back which also indicates that the bulls are in major control.

Conclusion

As the price has formed a symmetrical triangle pattern and shows a bullish sign on every parameter, we can expect that the price can try to break the upper resistance levels and the possible resistance the price can face is near the level of $311 and if it breaks that level too and sustains above that then it can head towards $380 levels.

Technical Level:

Resistance – $311 and $380

Support   – $240 and $220

Disclaimer

The analysis is done for providing information through technical analysis and no investment suggestions are given in the article to be made by investors. The coins are unpredictable so investors should have proper knowledge. Cryptocurrencies are highly volatile and risky. Investment should be made with proper technical analysis.