Tesla (TSLA) remains in the spotlight after a 27% surge in the EV maker’s share price last week drove the stock back into the green for the year. The rally followed a better-than-expected second-quarter deliveries report on Tuesday and building anticipation ahead of the company’s Robotaxi Day next month.
Amid the strong recent price momentum, we use technical analysis to identify key areas on Tesla’s weekly chart to watch out for.
Tesla shares have been tracking higher since the completion of a piercing pattern in late April. Typically, technical analysts interpret this two-bar candlestick formation as signaling a potential reversal from a downward trend to an upward trend.
Last week, the stock closed above both the 50- and 200-week moving averages and a prominent 12-month downtrend line on the highest trading volume since mid-February, indicating buying conviction among market participants. Moreover, the relative strength index (RSI) nears overbought territory, confirming the strong recent price momentum.
If the …