Tesla Inc (US: Tesla) Technical price action indicates a bullish return:
- The breakout of the bullish flag on 3rd Jan 2022 confirms the flag.
- Despite the throwback after the price failed to break the US$1,200.00 psychological resistance level, the piercing line candle rebounded yesterday above the key immediate support at US$945-US$987 and the 61.8% Fibonacci retracement level of US$866.12-US$1208.00.
- The only concern is that Ichimoku is showing a rangebound signal and the kumo is thinning.
*Expected timeline of the trade is 20 weeks from the date of report issuance.
*Should prices fail to rally beyond US$1,150.00, there is a possibility that Tesla will revert back to the major support at the US$880-US$853 region.
CHART LEGEND
Ichimoku Kinko Hyo
Red dotted line = 26 periods Kijun-Sen
Blue dotted line = 9 Periods Tenkan-Sen
Green Line B= 52 periods Senkou Span B
Pink Line A = 26 periods Senkou Span A
Black line = 26 periods Chikou Span. Lagging line