Tesla stock technical analysis: bulls may target the current 2020 high
14:45, 18 August 2020
Tesla posted impressive gains last week, as the electric car maker’s share price rallied from $1,400 to the $1,650 level.
Tesla share price analysis shows that a bullish falling wedge breakout is pointing to more gains ahead.
Tesla medium-term price trend
Tesla’s stock price gained over 15 per cent last week, following a short-lived pullback towards the $1,400 level.
Tesla share price analysis shows that bulls could be preparing to test back towards the $1,800 level.
Tesla stock technical analysis highlights that a bullish falling wedge breakout is currently in play.
The daily time frame shows that the ongoing falling wedge breakout remains valid while the price trades above the $1,500 level.
Traders should note that a double-top pattern will form if the price reaches the current all-time high, just below the $1,800 level, remains in place.
According to the size of the falling wedge, Tesla’s share price could trade towards the $1,800 and, possibly, the $2,000 level over the medium term.
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Tesla short-term price trend
Tesla stock analysis shows that a short-term bullish bias is in force while the price trades above the $1,400 level.
The 30-minute time frame currently shows that bearish MACD price is warning of a technical correction back towards the $1,500 level.
According to the one-hour time frame Tesla share price also has negative MACD price divergence around the $1,100 level.
It is possible that a short-term correction towards the $1,500 level may occur. However, the negative price divergence around the $1,100 level is unlikely to be reversed until the medium-term trend turns bearish.
Tesla technical summary
Tesla stock analysis highlights that breakout from a falling wedge pattern has taken place, and remains valid while the price trades above the $1,500 level.
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