Tesla stock is back on the move and this time, it's trading back above $1,000. Here's how the charts are setting up now.
Tesla shares are rallying higher on Wednesday, up 7.5% and climbing back above $1,000 a share. That's got bulls cheering the stock’s recent run.
On Tuesday, Tesla stock hit its lowest level since Oct. 22 and was down 27% from the highs.
However, shares reversed off that low, climbing more than $50 a share by the close.
That rally is extending itself Wednesday, with Tesla stock up more than 13% from yesterday’s low.
Tesla stock was in focus this morning ahead of the open, rallying several percent on the hope that CEO Elon Musk would be done selling his shares.
Musk said that he’s “sold enough” to meet his prior pledge. Earlier this week, Musk said he will pay more than $11 billion in taxes this year.
If Musk really is done selling the stock — and he should be — then that big headwind will be out of the way and we may see it rebound higher. Now that it’s back above $1,000, we have to wonder if Tesla can climb to new highs.
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The stock traded down into the $910 gap-fill level and prior all-time high at $900, and found its footing.
If we get specific, the 21-week moving average and the 200-unit moving average on the four-hour chart were also nearby.
In any regard, Tesla shares are ripping higher now, trading up through the 10-day moving average and hovering around the key $1,000 level, which has been a key pivot since late October.
If it can maintain above $1,000, the next obvious area comes into play near $1,025 to $1,035. There Tesla stock finds its 21-day and 50-day moving averages.
That should be an area to take a pause, but if Tesla is able to push through this zone, then the $1,100 level and downtrend resistance (blue line) are in play.
On the downside, let’s see if shares struggle with $1,000. In that case, I want to see the now-rising 10-day moving average act as support on the dips.
If it doesn’t, then the stock could go on to fill the gap down near $940.
There’s one other thing: If Tesla rallies up to the 21-day and 50-day moving averages but can’t push through, let’s see if the $1,000 mark and the 10-day moving average act as support.