TSLA pushes through key technical resistance level
Tesla Inc. (TSLA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TSLA ended the month 29.32% higher at 1079.81 after surging $70.46 (6.98%) today on high volume, strongly outperforming the Nasdaq 100 (1.96%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on June 10th, TSLA actually lost -5.09% on the following trading day. Today's close at 1079.81 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1010.00, the share confirmed its breakout through the previous session high after trading up to $77.50 above it intraday.
Daily Candlestick Chart (TSLA as at Jun 30, 2020):
Tuesday's trading range has been $83.77 (8.32%), that's far above the last trading month's daily average range of $42.28. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TSLA.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1019.20 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since June 10th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 970.91 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for Tesla. Out of 119 times, TSLA closed higher 52.94% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.71% with an average market move of 7.65%.