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Tesla stock price analysis for 02/05: TSLA may retest the 76.4% fib

Feb 5, 2020 | Stocks

The Tesla stock price has made a lot of headlines in 2020. Prices have been skyrocketing without too much resistance. All good things must come to an end, either temporarily or definitively. 

A Bullish Tesla Stock Price Trend

For a company share valued at under $33 a few years ago, TSLA certainly has come a long way. Although many expected a trend reversal in November 2019, it never fully materialized. At that time, the Tesla stock price had already hit $353.

Fintoism TSLA stock price run

That is a very high value for this company’s stocks. After all, Tesla has issues with turning “astronomic” profits since its inception. It is not something that can be resolved overnight either. That said, the last few earnings reports have shown there is improvement in sight. 

Following that news, a new Tesla stock price increase has begun. Ever since hitting $330, the uptrend has been very strong. A peak was reached just yesterday, with TSLA spiking to $967 for a few minutes. Such steep growth often comes at a cost. For now, it seems 

TSLA Technical indicators

Fintoism TSLA 0502

Bollinger Bands and Volume: The past few days have yielded significant volume. It is the main reason why the Tesla stock price has kept rising. As prices go higher, more people want to get in on the action. 

On the Trading212 chart, there is a very big red candle affecting TSLA. This candle is created with minor volume compared to the volume required to push from $779.5 to over $950. That seems to indicate a further drop will occur initially, but it is not necessarily definitive. 

Moving Averages: For now, the moving averages still favor an uptrend. The MA20 remains well above the MA50. Even the MA200 is moving up sharply and now sits above $390. That is not a confirmation of a continuing uptrend either. However, it shows that this current uptrend may need a bit of a breather. A retrace by $100 or more is not unlikely at this time. 

Fibonacci Retracement Levels: A lot of interesting things have happened. Following the pushback after hitting over $950, the Tesla stock price dropped a while Fibonacci level in quick succession. The current red candle indicates that the 76.4% level will come under pressure again in the near future. 

Potential Resistance and Support Levels: TSLA hasn’t had much chance to build solid support levels due to this crazy run. The only real support can be found near $475.05. Any level above that value is a potential resistance level. Standout figures are $872.11 and $962.9 if the Tesla stock price will resume its uptrend. 

In terms of support near the current price, things are a bit different, The Fib levels will play a crucial role in that department. First up is $774.23, or the 76.4% Fib. Below that is $727.95, which represents the 70.7% fib. If the trend were to turn extremely bearish, the $660.75 level – or the 61.8% fib – will be retested. 

Images courtesy of their respective sources.

Fintoism is not providing financial or investment advice. All content published on this platform is for entertainment and educational purposes only.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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