• Tesla shares retrace from recent losses to test $625 resistance.
  • TSLA still looks technically bearish, but MACD crosses over.
  • A strong support zone at $591 started the bounce.

Tesla shares are continuing to bounce nicely from the support zone oscillating around the 200-day moving average and $591 support zone. Tesla had until then looked to be in a downward spiral and on course to breach $500. However, the bounce in big tech names and the Fed repeatedly calling inflation a transitory phase eventually struck a chord with investors who returned to tech and growth names. 

Tesla stock forecast

Tesla has staged a nice recovery and has rallied up to a tough area to break. The earlier consolidation 2 zone contains a lot of price and volume discovery. Tesla has also been capped by the downward sloping trend channel in place since April 14, the top of which shares have just retraced up to. This area also corresponds to the May 11 high and the 21-day moving average. All in all. it is a pretty tough resistance zone. Phew, that was a lot to digest. Basically, what can be said is that Tesla is at a pivot zone or neutral. Really nothing too exciting should happen until a break of $667 to the upside or $539 to the downside. Failure to break current trend line resistance and 21-day at $625 could see a retracement, but the trend is not yet very strong. A break of $539 is a better trade to take as this brings the $440 consolidation zone into target. 

At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

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