Currently, the stock is facing a resistance zone near $355 and a potential breakout around $370 in the coming weeks thanks to new Full Self-Driving (FSD) updates scheduled to come soon.
However, the technical outlook is entirely positive, as the 20-day moving average (MA) is just above the current price, implying some short-term selling pressure.
Accordingly, while a potential upside breakout is possible, it hinges on broader market strength, and a failure to break above $370 could see the stock slip short-term.
Looking at the stock’s performance, analyst Ali Martinez, also known as ali_charts, suggested that $317 would be an ideal time to buy the dip if the stock does retrace, as comparable dips in the previous couple of months have always preceded a rally.
As can be appreciated from Martinez’s chart, Tesla is trading within a rising parallel channel. Each time the price touched the lower boundary, it rebounded higher. Conversely, each time it reached the upper boundary, it faced resistance.
In other words, long-term bias remains bullish within the rising channel, but short-term volatility is also likely, although it could present a buying opportunity.
At the time of writing, Thursday, September 4, TSLA shares were sitting at $337.89 in pre-market, up another 1.14%,
In addition to the modest share price rebound, Tesla stock trading volume also surged this week, with more than 88 million shares exchanged on September 3.
As mentioned, the uptick was supported by non-domestic sales. For instance, the automaker sold 83,192 vehicles in China last month, a 22.6% month-over-month jump. Similarly, the company saw its sales soar 86% in Turkey.
Still, it bears mentioning that numbers have not been stellar across the board. Indeed, European registrations plunged 40% year-over-year (YoY) in July, which is likely to be felt in Q3 results.
Likewise, the company’s India launch has also been underwhelming, with just 600 reported bookings.
Long-term, the average Tesla stock price target is currently $306.42 for the next 12 months, based on a total of 35 ratings aggregated on market analysis platform TipRanks.
