Will Tesla surge 25% higher after a technical breakout?

By Admiral Markets

Tesla ended last year more than 800% higher. It’s one reason it’s been on everyone’s watchlist for 2021.

So far, the bulls have been disappointed as the stock has dropped nearly 40% from its all-time high price level.

However, some investors may start to position themselves early on before the 5 May earnings announcement which is likely to be quite volatile.

Source: Admirals MetaTrader 5, #TSLA, Weekly – Data range: from Feb 23, 2014, to Apr 8, 2021, performed on Apr 8, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

In the long-term weekly chart of Tesla’s share price shown above, the huge surge higher over the coronavirus pandemic period is clear to see.

Most stock markets around the world performed well during this period of time due to government stimulus plans designed to help companies and revive the economy.

Some of the hottest stocks last year have so far failed to continue their momentum. But that could change as we move into earnings seasons.

Source: Admirals MetaTrader 5, #TSLA, Daily – Data range: from Jul 15, 2020, to Apr 8, 2021, performed on Apr 8, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

The daily chart above shows a wedge formation between the two black support and resistance lines.

Price has tried to break through this wedge and is currently sitting above it. If buyers do manage to hold on above the resistance level, the price could try an attempt for the all-time high level at around $~887.00.

That would represent a near 25% move higher from current levels.

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By Admiral Markets