Tesla at Key Resistance Level

By | March 25, 2016

The technical picture on the Tesla (TSLA) weekly chart is bullish. Momentum indicators are headed higher, money flow is turning positive, and the stock price has been moving higher for the last month. It has, however, entered an important zone of resistance, near the flat 40 week (200 day) moving average and the highs made at the end of last year.

100001. TSLAweekly

A hammer candle formed last week within the resistance zone, and this reflects positive price action. But follow-through price action is required to sustain the short-term bullish trend or the stock runs the risk of a pullback that could take it back down to the channel low, and require several months of consolidation and base building before another run at resistance.

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