Stock of the day: Tesla
08 February 2023
2023 has certainly been a year of Tesla so far. The stock is climbing higher almost daily and if buyers keep pushing, we will get a fifth consecutive bullish week on Friday. How far will this rise go and is it sustainable in the long term? Well, we are about to find out but we are certainly approaching a key resistance here.
The key resistance is marked with the blue area on the chart and stems from two factors. The first one is the 38,2% Fibonacci and the second one is the neckline (green) of the giant Head and Shoulders pattern (yellow) which technically caused the 2022 drop in the first place. In theory, the price reaching the blue area will be a great reason to sell profits. As long as we stay below the neckline, we cannot say that Tesla is back in the long-term up-trend.
As you can see, our sentiment remains slightly pessimistic. In my opinion, in the short-term, we can get further rises but, in the mid-term, we should expect bearish correction - especially after the contact with the 38,2% Fibonacci.