On 16 September, we highlighted several signs of strength in Tesla’s (TSLA) share price, including:
→ The price remaining above the psychologically important $400 mark;
→ Reaching the highest levels seen since late January.
We also identified the formation of an ascending channel and suggested that, while the long-term outlook remained broadly optimistic, the possibility of a correction could not be entirely ruled out.
Since then, TSLA shares have stabilised close to the upper boundary of the channel, continuing to hold above the $400 level. On Friday, they emerged as one of the top performers in the market, rising by more than 4%. This brings the cumulative gain since the start of September to around +30%.
Why Are TSLA Shares Rising?
Several factors underpin the current bullish sentiment:
→ Anticipation ahead of the quarterly Production and Deliveries report, expected this week. According to recent forecasts, actual figures may surpass expectations, even if they still reflect a decline compared with the same period last year.
→ Upgrades to target prices. Dan Ives of Wedbush, a leading bull on Tesla, last week increased his target price for TSLA to $600 — the highest on Wall Street — citing the company’s significant potential in artificial intelligence and robotaxi services.
→ The “Musk factor”: Ongoing discussions about Elon Musk stepping away from politics are being interpreted as a long-term positive catalyst for the company.
The ascending channel remains intact, signalling that the upward trend is still in place. However, the chart suggests that the channel’s upper boundary is now functioning as a level of resistance. This is unsurprising given Tesla’s extraordinary gains in September — with the share price having doubled from its yearly low. A potential slowing of momentum is signalled by a bearish divergence observed on the RSI indicator.
Resistance at the upper boundary is further reinforced by a powerful bearish reversal pattern from late 2024. A similar dynamic was evident recently when TSLA struggled to break through the bearish reversal zone in the $345-355 range, resulting in a prolonged period of sideways movement in August and early September.
By analogy, it is possible that the $445-465 zone may also act as a resistance level, meaning that a correction remains a credible scenario. In such a case, TSLA shares could pull back to test the psychologically significant $400 level — a level strengthened by support from the median of the current ascending channel.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer: This sponsored market analysis is provided for informational purposes only. We have not independently verified its content and do not bear any responsibility for any information or description of services that it may contain. Information contained in this post is not advice nor a recommendation and thus should not be treated as such. We strongly recommend that you seek independent financial advice from a qualified and regulated professional, before participating or investing in any financial activities or services. Please also read and review our full disclaimer.
