Shares of Tesla Inc (TSLA) are rallying higher today, one week ahead of its inclusion into the S&P 500. Investors continue to remain bullish on the name as funds buying the electric car maker to come in alignment with their S&P 500 mandates. While investors seem to be bullish regardless of how high the Tesla price has soared, technical traders are eyeing this Tesla stock chart trend line. It is the only thing that matters. To find this trend line, simply connect the high pivot from February 4th, 2020 to the high from August 31st, 2020. Extend that trend line and it tags the exact high from last week (December 8th, 2020). This trend line connects the highest points on the chart and price has never gone above this level. That makes this Tesla stock chart trend line the only thing that matters.
If this trend line holds, at some point in the next month Tesla stock should fall hard like it has off the last hits of this Tesla stock chart trend line. The first retrace target is $500/share.
(Click on image to enlarge)
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