Tesla is in a though spot. It is locked between a key support level at 539.49 and the 200-day moving average. A break below the key support at 539.49 will trigger an inverted Cup with Handle formation, that has a target near 199. It is also important to emphasize that the uptrend from the March 2020 low at 70.21 remains intact and only a close below 583 will break this uptrend and call for a strong test of the key support level at 539.49.
To lift the mood for Tesla, a break above the resistance level at 741.25 is needed. If the prediction comes true, we should rally towards 1,150.
Trading recommendation:
Stop on longs should be just below the key support level at 539.49.
The material has been provided by InstaForex Company - www.instaforex.com