I reviewed the charts of Tesla (TSLA) three times in May with the last review on May 30, when I wrote "Traders who are long TSLA should continue to hold. Traders looking to go long TSLA should be patient and buy strength above $208. Risk below $180." I included a Point and Figure chart with a $245 price target.
Let's see how the charts and indicators look here on Friday morning with TSLA trading higher in the pre-market on the heels of General Motors ( GM) cutting a deal to use Tesla charging stations.
In this daily bar chart of TSLA, below, I can see that prices have broken out over the February highs and extended its gains above the 200-day moving average line. The slope of the 50-day line is now positive. Prices are pretty much trading in the pre-market at our $245 price target. The trading volume has been increasing on this advance and the On-Balance-Volume (OBV) line has made its own new high for the move up. The trend-following Moving Average Convergence Divergence (MACD) oscillator is still in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of TSLA, below, I see a bullish picture. Prices are strong and not showing us upper shadows. Chart readers who look at resistance zones would not see resistance until the $275-$300 area. The 40-week moving average line is bottoming. The weekly OBV line is strong. The MACD oscillator is just slightly below the zero line.
In this daily Point and Figure chart of TSLA, below, I can see that $245 price target we noted last month.
In this weekly Point and Figure chart of TSLA, below, I see that the software is projecting a price target in the $389 area.
Bottom line strategy: Traders who are long TSLA from previous recommendations should continue to hold. Raise stops to $195 from $180. The $300 area is my next price target for now.
