Can Tesla share price keep pushing higher

Article By: ,  Senior Market Analyst

Bulls drove Tesla over 750% higher across 2020; a phenomenal year for the electric car maker, concluding with inclusion into the S&P500 and an all time high of just over $700 in the last session of 2020.

Fundamentals have also been impressive. Tesla reported 180,570 deliveries in Q4 vs 174,000 expected, taking the annual total to 499,550 just shy of Elon Musk’s 500,000 goal. 

The latest numbers show that the electric car maker is going from strength to strength even at a time when the global automobile industry saw a sharp contraction in sales. Even so the stock still looks lofty. Can the bull run continue in 2021? 


Tesla Chart Analysis

Tesla jumped over 5% higher in early trade to a fresh all time high of $744, before retreating slightly to $730.

Tesla trades above its 100 & 50 sma on the daily chart, whilst the 20 sma has been guiding the price high. Any dips towards the 20 sma have quickly been buoyed. The upward trend shows no indication of a reversal as it continues into unchartered territory. Until the 20 sma is breached its tough to be negative on the stock.

However, it is worth noting that the RSI has reached 71.96, this is above the key 70 level which indicates over bought conditions and a pull back towards the 20 sma could occur before additional gain.

Above $550 the price action remains bullish. Bears would be looking for a move below $500 to negate the bullish trend – that would be over a 30% decline from current levels which is not impossible but looks unlikely right now.

Immediate resistance is seen at $744 today’s high, prior to $750 round number and $800.

On the flip side look for support at $695/700 high 30th December and round number, $650 the confluence of 20 sma and horizontal resistance turned support (high 8th December).

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