Usman Salis
⬤ Tesla shares are showing early bottoming signs after holding strong at the $420 support level. The stock bounced back following Elon Musk's appearance at the World Economic Forum in Davos, where he announced that Full Self-Driving approval in Europe could arrive as soon as next month, with humanoid robots set for public sale by late next year.
⬤ The stock is currently trading around $450, recovering nicely above its short-term moving averages after testing the $420 zone without breaking the broader uptrend. Recent sessions show a break above a minor downtrend line with decent volume, suggesting the selling pressure from the December highs near $490 has cooled off.
⬤ Tesla's technical setup looks solid, with an RS Rating of 84 showing it's still outperforming the broader market. Volume patterns over recent days point to stabilization rather than heavy selling, while the stock stays well above its longer-term trend lines. The dip to $420 didn't damage the upward structure that's been building since mid-2024.
⬤ This matters because Tesla's price action is improving right as the growth story around autonomy and robotics heats up again. Holding key support while breaking minor downtrends often shifts market sentiment, especially when paired with forward-looking news from leadership.
Usman Salis
