Tesla (TSLA) shares took off on Friday as the stock smashed through a key resistance level, enticing bold traders to take a new position.
TSLA shares jumped 4.7%, closing at 298.10. This sharp move lifted the stock above its 200-day moving average and ended a stubborn multi-week downdraft.
BYD of China continues to extend its lead while Elon Musk navigates fresh obstacles.
Sneak Peek From the Trading View chart, more tactical investors could consider the May 2 high of 294.86 as an entry. Tesla still has a long way to go to recover from the overhead resistance Tesla’s shares are facing near the December 18 peak of 488.54.
The broader market picking up pace had given TSLA an early limit of 307.04, with Friday’s rally losing steam in step. Traders aligning to make the exit might see the dip to 279.41 as a sensible stop.
The Anticipation Is Set Off: Robotaxis Expectation Sends Tesla Soaring
Sentiment has been bullish since April 22, when Tesla disclosed their Q1 report. Shares are up 26% since that report, with eyes on the expected launch of Model Y robotaxis in Austin, TX, in June.
Admittedly, earnings for the quarter decayed by 40%, falling beneath projections, while the company scrapped its delivery growth targets set for 2025. Still, Musk Tesla’s renewed commitment to the company, alongside his optimistic narratives revolving around robotaxis, has lifted confidence from investors.
While details are still being worked out, Musk maintains that the rollout is scheduled for next month. He even hinted at the possibility of “10-20” vehicles operating in the streets on opening day.
After bottoming out at 214.25 on April 7, TSLA has rapidly surged, now up 40% from the bottom.
Despite the recovery, Tesla shares the scars of the current dip. The stock is still 26% year-to-date, 39% below its previous high of 488.54 in December and above the 200-day mark.
According to the Trading View tool, Tesla’s shares have a 21-day average true range (ATR) of 5.96%. ATR measures the volatility of an asset’s price fluctuations. Stocks with high ATR often experience sharp movements that trigger panic dips, while low ATR stocks remain calm in comparison.
Currently, Tesla holds a Composite Rating of 68 out of 99 and an 86 Relative Strength Rating. Tesla’s EPS Rating, however, sits far below at 59.
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Hey, I’m Badal! I’m super passionate about cars—especially electric ones. Whether it’s EVs, electric trucks, bikes, or anything with a battery and wheels, I’m all in. I love writing blogs that break things down for fellow enthusiasts and curious readers alike. Hope you enjoy the ride as much as I do!
