Tesla’s stock prices moved sideways within a channel of $271–$294.5 per share during 10 trading sessions from April 25 to May 8. On May 9, the price broke out of this range and rallied to $349.7 (+19.95%) by mid-session on May 14. This level formed the upper boundary of a new trading channel between $339.9 and $349.7, where Tesla has been trading through May 23. At the time of writing on May 27, the price stands at $339.56. The stock price movements have been volatile, rising sharply toward the end of one session and then dropping abruptly at the start of the next.
On the daily timeframe, the Moving Average Convergence/Divergence indicator (MACD) remains deep in the positive territory, signaling strong buying momentum. The four-hour MACD confirms the bullish trend but shows a gradual weakening of the upward impulse.
The daily RSI is at 70, having retreated from the overbought zone and now moving steadily sideways along the threshold, indicating sustained buying pressure. Meanwhile, the four-hour RSI is at 46 and has been steadily declining from the overbought zone for 6 consecutive sessions, suggesting a noticeable weakening of the recent rally and a possible shift to at least a sideways trend for Tesla’s stocks.
This week, Wedbush Securities raised its 12-month price target for Tesla Inc. shares from $350 to a Wall Street record of $500, citing significant upside potential tied to the company’s autonomous vehicle and AI strategies. The brokerage reaffirmed its “Outperform” rating for the stock, describing Tesla as a leader entering a golden age of autonomous growth.
Analysts Daniel Ives and Sam Brandeis estimate the market opportunity for AI and autonomy for Tesla at no less than $1 trillion, calling the automaker the most undervalued AI company in the market. They suggest Tesla’s long-term positioning could compete with tech giants such as Nvidia, Microsoft, and Alphabet.
Trading strategy option: buy in the range of 333-335.5 with a Take Profit at 346 and a Stop Loss at 326.
This content is for informational purposes only and is not intended to be investing advice.
