Peter Smith
⬤ Tesla's share price sits just below a stubborn ceiling. At about $432 the stock once again meets the same downward sloping line that has blocked every rise since the start of November. The chart records three separate hits at this barrier - each drew immediate selling and left a clear band of resistance between $430 and $435.
⬤ Although price has failed at that line three times, each low has landed higher than the one before, a sign that buyers keep returning. The price has found a floor near $420.69 plus again near $412.30, with thicker support at $400.88. The RSI has climbed away from its recent low, a hint that upward pressure is gathering.
The repeated contact with the diagonal line raises the odds that the price will soon break through or be turned back hard.
⬤ On the one hour chart the trading range has narrowed into a tight wedge, a shape that often ends with a sharp move. Pullbacks have become shallower and the upper edge of the wedge has been probed more often, evidence that sellers now struggle less than they did earlier.
⬤ A close above the trendline would flip the mood and let the stock aim for higher ground. A further rejection would push price back toward the support levels already noted. While Tesla remains squeezed between those two boundaries, the next test of the line will decide whether the climb resumes or the market slips back into a fresh sideways stretch.
Peter Smith
