Tesla Stock Forecast: Threatens a Break Higher

• Tesla gained around 3% on Monday, breaking to a fresh high as momentum continued to drive the market.
• While resistance sits near $480 and $500, buyers remain active on dips, keeping the bullish trend intact.

Tesla has seen a bit of positive momentum during the trading session on Monday as it gained roughly 3% and broke out to a fresh new high. That being said, it's worth noting that the $480 level is still offering a bit of a ceiling, and if we can break above there, then I think it opens up the gateway to $500. A short-term pullback at this point could open up a move to the $440 level, where I would expect to see a significant amount of support. If the market were to break down below there, then it's likely that we would go looking at the 50-day EMA at the $416 level.

Top Regulated Brokers

1

Get Started 74% of retail CFD accounts lose money Read Review

$400 Level Continues to Look Like Support

With that being said, it's really not until we break down below the $400 level that I think the trend would change, and short-term pullbacks should continue to have people coming into Tesla looking for value in more of a buy-on-the-dip type of scenario. Ultimately, the market for Tesla has been momentum-driven, and I don't see that changing anytime soon. It's worth noting that the most recent earnings call was a little bit of a miss, but despite that, the market has actually rallied. So given enough time, it's likely that the market could go looking to the $500 level, which should be a large, round, psychologically significant figure that will be difficult to break above.

If we were to turn around and break down below the $400 level, it would be catastrophic for Tesla, and we could see the market drop down to the 200-day EMA at the $350 level. Ultimately, though, this is a market that looks very bullish, and I have no interest in shorting it, as I believe Tesla will not only reach $500 but could very well go higher, breaking above that $500 level and perhaps kicking off the next leg higher from here.

Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.