Tesla Stock has one of the best charts in technology

Tesla Stock has one of the best charts in technology

It must be driving the bears crazy: Tesla (TSLA) He has one of the best looking charts in all technical areas.

Despite the headwinds facing the market leader in electric vehicles, buyers continue to drive up stock prices.

From a big picture perspective, the stock market has been struggling. The S&P 500 fell 4.7% last week, while the Nasdaq fell 5.5%. The performance comes after the hotter-than-expected inflation report on September 13th.

Markets are now facing a rate hike by the Federal Reserve today.

Meanwhile, Tesla shares acquired 1.2% last week and still threatening a bigger rotation to the upside.

It’s not only outperforming many of the big tech stocks – with many FAANG names emerging, as well as favorites like Nvidia. (NVDA) – It also outperforms its peers in the automotive field, such as Ford (F) and General Motors (GM) .

Trade Tesla Stock

On the Tesla stock chart, it’s hard not to see a cup-and-handle pattern.

This is where stocks broke below the previous support at $325 and continued to form a big cup pattern. This was followed by a rally back to $315 and a shallower decline to $270 – the handle.

What the bulls are now asking is simple: Can Tesla stock clear the $315 area?

Not only are there several weekly rallies in this area acting as resistance, but last month’s high is also present at $314.67. Moreover, the 61.8% retracement is close at $316.35.

While this builds up as resistance (or supply, if you prefer), it also creates a potential turning point that could lead to a much stronger move to the upside.

Although the $325 spot isn’t too far away, this is the first bullish area to watch. Above that could trigger a move to the $345 to $350 region.

On the downside, watch the $300 and the 10-day moving average over the short term. Not only is this level potentially relevant from a psychological point of view, for 10 days it has been an active support amid the current move.

Below that puts the $292 to $293 area where the 21-day and 200-day moving averages are currently located, followed by the 50-day drop near $285. For what it’s worth, 50 days was a notable support during last month’s correction.

In short, Tesla stock has shown a lot of relative strength this month. Thus, it is a stock to watch closely for a potential buy-side trade.

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