The Tesla Inc (NASDAQ: TSLA) stock has been trading in a consolidative manner since April 13th, between the 690.00 and 783.00 zones. However, looking at the bigger picture, we see that it continues to trade above the upside support line drawn from the low of June 25th, and thus, we would consider the medium-term outlook to be positive.
In order to get confident on another round of buying though, we would like to see a clear break above the 783.00 area. Upbeat earnings for Q1 today, after the closing bell, maybe the catalyst for a positive gap above that territory tomorrow. If this is the case, investors may get encouraged to target once again the stocks all-time high at 900.23, hit on January 25th, the break of which would take the stock into territories never tested before.
Looking at our daily oscillators, we see that the RSI is flat slightly above its 50 lines, while the MACD, even though above both its zero and trigger lines, is flat as well. Although both indicators detect some upside speed, the fact that they are flat enhances our choice to wait for a break above 783.00.
On the downside, we would start examining the case of a bearish reversal upon a dip below 540.00. The stock would already be below the aforementioned upside line and investors may allow declines towards the 465.00 barriers, marked by the inside swing highs of September 15th and October 14th. If they are not willing to buy near that level either, then we may see the slide extending towards the 375.00 zones, marked by the low of October 30th, or the 330.00 territories, defined as a support by the low of September 8th.