Current trend

Shares of Tesla Inc., the world’s leading manufacturer of electric cars, have been growing for the second week, testing 265.62 (Murrey level [5/8]).

Positive dynamics are developing despite the publication of a poor Q3 report on electric car sales, the volume of which decreased by 7.0%, reaching 435.0K units. According to company experts, the reduction was due to the temporary closure of several factories for modernization. In addition, the China Passenger Car Association (CPCA) reported that the corporation sold only 74.073K electric cars in the country in September, 10.9% less than year ago. According to observers, the American division will not be able to meet its annual sales target of 1.8M despite price cuts for the Model 3 sedan and Model Y SUV.

Investors remain optimistic, relying on the company’s Q4 profit growth: the main hopes are related to the launch of global sales of the new Cybertruck electric pickup truck at the end of the year, for which there is already a significant number of pre-orders, as well as the start of sales of the renewed version of the Model 3 sedan in China, which will significantly increase corporate earnings and shareholder payouts.

Support and resistance

The trading instrument is testing 265.62 (Murrey level [5/8]), the breakout of which will allow it to grow to the area of 281.25 (Murrey level [6/8]) and 296.88 (Murrey level [7/8]). The key “bearish” level is 234.38 (Murrey level [3/8], the lower line of Bollinger bands), after its breakdown, the quotes can reach the area of 218.75 (Murrey level [2/8]) and 203.12 (Murrey level [1/8]).

Technical indicators do not give a single signal: Bollinger Bands are horizontal, the MACD histogram has moved into the positive zone, and Stochastic has left the overbought zone.

Resistance levels: 265.62, 281.25, 296.88.

Support levels: 234.38, 218.75, 203.12.

Trading tips

Long positions may be opened above 265.62 with the targets at 281.25, 296.88 and stop loss around 254.40. Implementation time: 5–7 days.

Short positions may be opened below 234.38 with the targets at 218.75, 203.12 and stop loss around 245.00.