Tesla (TSLA) – Get a report was in the spotlight on Friday after the company announced first-quarter shipments. However, at stock was out of focus.
Due to the weekend, there was no US stock market on Friday. Investors didn’t forget about the automaker over the weekend, though. The stock was up about 5% on Monday and traded just under $ 700.
In the first quarter, the company delivered 184,800 vehicles, which is 100% more than a year earlier and 2.4% more than in the previous quarter. He also confirmed the consensus estimate of approximately 177,000 vehicles.
The news drove prices up sharply as Wedbush analyst Dan Ives raised his target price to $ 1,000 per share.
Ives also spoke positively about Ford. (F) – Get a report and General Motors (GM) – Get a report as the two automakers continue to push their electrical plans forward.
Will this be enough to bring Tesla stock back into a bullish trend? Let’s look at the graph.
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When we look at Tesla’s daily chart, stocks did a great job last week, climbing roughly $ 600.
Stocks continued to bounce off that level, refusing to retest the 10-week moving average and the previous March low of $ 539.49.
We had a mixed session ahead of Monday when Tesla broke above the downtrend resistance and 100-day moving average, but closed below both as the bulls lacked confidence ahead of the long weekend and delivery report.
Price action is much better with Monday’s move. However, we still have trouble with Tesla in a key area as the $ 700 to $ 715 zone has been resistance since late February.
The bulls need to see Tesla break above Monday’s high at $ 708.16. Above that, the door opens to $ 715 plus, introducing a 50-day moving average into play. If Tesla can get past the 50-day period, then we can start talking about a return to $ 800 or higher.
From here, we don’t want stocks to break below the 100-day moving average. If they do, 10-day and 21-day moving averages will come into play.
Below these levels, uptrend support may appear, followed by the $ 600 level. If tech stocks start picking up steam, Tesla already has good news to rally. Let’s see if the bulls can curb their grip on stocks from here.