A very strong day for Tesla stock price on Tuesday

The Tesla stock price gained 8.21% on the last trading day (Tuesday, 17th Nov 2020), rising from $408.09 to $441.61. During the day the stock fluctuated 6.69% from a day low at $433.01 to a day high of $462.00. The price has fallen in 7 of the last 10 days but is still up by 4.18% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 42 million more shares were traded than the day before. In total, 61 million shares were bought and sold for approximately $26.86 billion.

Bank of America does not see either upside or downside right now giving TSLA "Neutral" on their last update on November 17, 2020. The price target was set to $500.00.Over the last 30 days, this security got 2 buy, 8 sell and 8 hold ratings.

The stock is moving within a very wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Tesla stock with a 90% probability to be traded between $343.72 and $515.70 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

The Tesla stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $416.96 and $424.56. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Wednesday, October 14, 2020, and so far it has fallen -4.27%. Further fall is indicated until a new bottom pivot has been found.

On the downside, the stock finds support just below today's level from accumulated volume at $418.32 and $410.00.There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Tesla finds support just below today's level at $418.32. If this is broken, then the next support from accumulated volume will be at $410.00 and $400.37.

This stock has average movements during a day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $28.99 between high and low, or 6.69%. For the last week, the stock has had daily average volatility of 3.35%.

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Tesla stock to perform well in the short-term period. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell Candidate to a Buy Candidate candidate.