First higher low since May 2023

Tesla has formed its first higher low since May of last year. Currently, its stock is trading at around $186.94 a share heading into the US open. Looking at the weekly chart, we can see that the near-term resistance reads $191.52 followed by $198.77. A break and close above $198.77 would then shift the focus towards the February high of $205. Since July of last year, Tesla’s stock has been in a clear bearish trend. However, ever since the talks of Elon Musk’s pay package intensified, the price has been consolidating for a potential move in either direction. With the news being taken by the market as more positive, a new momentum boost towards the upside may be underway. Although so far, this hasn’t been clear. Towards the downside, we can see the area of $151-$160 is acting as the near-term support zone. A break below $151 may lead to a re-test of this year’s low of $138.76. Regarding the technical indicators, they sway towards the bullish bias rather than bearish. The MACD has remained positive since turning in May, the first time since December. Whereas the RSI has now entered a neutral stance as it reads 49.