Can Tesla's share price keep pushing higher?

Tesla hits another all time high. Does the electric car maker's impressive rally have further to go?

Tech (1)

Bulls drove Tesla over 750% higher across 2020; a phenomenal year for the electric car maker, concluding with inclusion into the S&P500 and an all time high of just over $700 in the last session of 2020.

Fundamentals have also been impressive. Tesla reported 180,570 deliveries in Q4 vs 174,000 expected, taking the annual total to 499,550 just shy of Elon Musk’s 500,000 goal. 

The latest numbers show that the electric car maker is going from strength to strength even at a time when the global automobile industry saw a sharp contraction in sales. Even so the stock still looks lofty. Can the bull run continue in 2021? 

Tesla Chart Analysis

Tesla jumped over 5% higher in early trade to a fresh all time high of $744, before retreating slightly to $730.

Tesla trades above its 100 & 50 sma on the daily chart, whilst the 20 sma has been guiding the price high. Any dips towards the 20 sma have quickly been buoyed. The upward trend shows no indication of a reversal as it continues into unchartered territory. Until the 20 sma is breached its tough to be negative on the stock.

However, it is worth noting that the RSI has reached 71.96, this is above the key 70 level which indicates over bought conditions and a pull back towards the 20 sma could occur before additional gain.

Above $550 the price action remains bullish. Bears would be looking for a move below $500 to negate the bullish trend – that would be over a 30% decline from current levels which is not impossible but looks unlikely right now.

Immediate resistance is seen at $744 today’s high, prior to $750 round number and $800.

On the flip side look for support at $695/700 high 30th December and round number, $650 the confluence of 20 sma and horizontal resistance turned support (high 8th December).

Learn more about trading shares

More from Tech Stocks

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account