Tesla Inc (NASDAQ:TSLA) was trading over 1% higher in Wednesday’s premarket after driving up through a key resistance level at the $145-mark Benzinga called out Sept. 2.
Fotowatio Renewable Ventures BV and Harmony Energy announced Tesla’s megapack lithium-ion batteries will be used to power the United Kingdom’s largest 99-megawatt energy storage project called Clay Tye. Tesla’s megapacks are already being used in two other battery storage facilities in England.
The r/WallStreetBets community has been eyeing Tesla and the stock was trending again on Wednesday. On Sept. 5, Cathie Wood reiterated how Tesla’s stock could reach a whopping $3,000 per share if the company executes well.
Tesla has a lot of work to do before potentially tripling in value, but the stock does look like it’s headed higher.
The Tesla Chart: Tesla broke up from a symmetrical triangle on Aug. 30 and then spent the following four trading days consolidating the move. On Tuesday the stock shot up over 2% and busted through an upper resistance level. The measured move from the break of the triangle is about 30%, which could put Tesla’s stock up to $926 at some point in the future.
Tesla’s relative strength index (RSI) reached about 68% on Wednesday, indicating the stock will need consolidation on the daily chart to cool down. When a stock’s RSI is at or above 70% it’s in overbought territory, which is a sell signal for technical traders. When Tesla’s RSI reached 68% on Aug. 5, the stock declined 10% over the following 10 trading days.
Tesla is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day, both of which are bullish indicators for the short term. The stock is also trading about the 200-day simple moving average, which indicates overall sentiment is bullish for the longer term.
- Bulls want to see sideways consolidation on low volume to cool the RSI and then for big bullish volume to come in and break the stock up over its next resistance level at $780. If Tesla can regain the level as support, it has room to make a run back for its all-time high of $900.40.
- Bears want to see big bearish volume come in and drop the stock back down below the $745 area. If Tesla loses the area as support, it could fall below the eight-day EMA. Below the level, there is support at $720.
