Tesla shaking hands with notable higher timeframe resistance

Resistance putting in an appearance on the monthly timeframe

As seen from the monthly timeframe, price action is crossing swords with key resistance at $208.59. We can also see that the unit is testing space just south of channel resistance, taken from the high of $384.29, and the 12- month simple moving average, currently fluctuating around $220.15. Combined, this represents a notable technical ceiling to be mindful of.

Daily chart testing upper bollinger band

Price movement out of the daily timeframe witnessed a close outside of the upper Bollinger Band on Friday (set to 2 standard deviations [calculated through the 20-period simple moving average]). Tesla is trading 6.0% lower at the time of writing after gapping south at the open (note that the company fell a whopping 65.0% last year, erasing the prior year’s upside and about half of 2020’s gains) and appears poised to at least revert back to the Bollinger Band’s mean value of around $187.26.

The Relative Strength Index (RSI) is also on the doorstep of its 50.00 centreline; a move under the aforementioned line would indicate negative momentum (average losses exceeding average gains) and perhaps prompt a (price) drop under the Bollinger Band’s 20-period SMA.

All eyes on H1 trendline support

Having noted the monthly and daily timeframes testing resistance, the H1 trendline support drawn from the low $163.92 will likely be watched. Defending the ascending line is likely to be short-lived, with a break to the downside favoured, targeting support coming in from $187.29.

Adding to the bearish vibe and potential breakout below H1 trendline support, the H1 RSI recently voyaged south of its 50.00 centreline.