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.
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