Accumulated positions near key support are signal to buy Tesla stock

The daily timeframe shows that a short-lived recovery of Tesla shares (TSLA) has recently transformed into a downtrend. Following an unsuccessful attempt to test the upper boundary of a descending channel at around $430, prices retreated—a classic response to encountering a technical resistance level.

The Stochastic Oscillator confirms this decline. After jumping to overbought territory, the %K line (63) reversed and crossed below the %D one (72)—a telltale sign, indicating that buying momentum is fading while sellers are gaining strength.

On the flip side, the Chaikin Oscillator appears to be acting out of character, rising since December despite the fall in TSLA. Why is this happening? The answer is simple: market players are using lower prices to accumulate positions. The indicator is currently hovering around the zero level. A slowdown in Tesla’s share decline near $400 could bolster buying interest and trading volume. This, in turn, may trigger a retest of the same resistance, which could eventually be breached.

With no macroeconomic shocks on the horizon and Tesla’s internal drivers, the stock is unlikely to dip below $400. In other words, the overall backdrop appears favorable. The tech company has confirmed its plans to launch the Cybercab robotaxi in April and expand its Full Self-Driving (FSD) service to nine cities in the first half of the year. The negative impact of the recent switch to a subscription-based business model has probably been priced in, and long-term investors view the $400 level as an attractive entry point ahead of a new phase of growth linked to Elon Musk's AI ambitions.

Technically, the $380–$400 zone proved to be pretty important last November. At that time, the lower limit of this range served as a launching pad for a rally to all-time highs. Therefore, the price’s proximity to these levels is now capturing the attention of traders betting on a rebound.

Consider the following trading strategy:

Buy TSLA at the current price or closer to $400, with a potential breakout above the channel’s upper boundary in sight. Place Take Profit at $440. Set Stop Loss at $380.

This forecast remains relevant between February 17 and February 25, 2026.