Tesla’s stock has been in a sustained uptrend since late April when it found its feet at the 152.00 support zone. Moreover, in the last daily session, the price jumped to its highest levels since November 2022 before paring some gains.
The momentum indicators currently suggest that buying forces are strengthening despite being in overbought territories. Specifically, the MACD is posting consecutive multi-month highs above both zero and its red signal line, while the RSI is positively charged within the 70-overbought mark.
For the uptrend to resume, the bulls need to initially conquer the February high of 216.80. Violating that zone, the price could advance towards the November 2022 peak of 263.40. Even higher, the 263.00 zone, which served both as support and resistance in the past, could cap the stock’s upside.
On the flipside, bearish actions could send the price to test the previous resistance of 207.00, which could now act as support. A break below that level could trigger a retreat towards 194.00 before the April support of 175.50 comes under examination. Failing to halt there, the stock may descend to challenge 163.40.
Overall, Tesla’s stock has been posting consecutive higher highs, while it surged to a fresh seven-month peak on Monday. However, a downside correction should not be ruled out as the price has reached overbought conditions.