Tesla Stock Forecast: Bullish Rally Possible After Cup and Handle Breakout

Tesla (TSLA) could be on track for a bullish rally as the stock nears a potential breakout from its classic cup and handle pattern — a strong technical signal for upward momentum.

Currently, Tesla’s stock price is consolidating around the Fibonacci retracement level of $454.35, indicating a period of market indecision. This consolidation likely stems from investor uncertainty following Tesla’s recent earnings report on October 22, which initially sparked a strong bullish move before cooling off.

If Tesla manages to break above the current resistance, the next Fibonacci target could be around $501.89, signalling potential upside. However, a break below key support at $408.66 may lead to a bearish correction.

Analyst forecasts remain mixed, with a consensus price target of $382.54, suggesting a potential downside of 17.11%. This divergence highlights the uncertainty among analysts regarding Tesla’s short-term stock direction.

Tesla Stock Outlook for Traders and Investors

Over the coming weeks, traders should closely monitor Tesla’s price movement for signs of a breakout or breakdown. A confirmed move above the $454 resistance zone could trigger renewed buying momentum, while a drop below $408 may indicate a bearish reversal.

Whether bullish or bearish, Tesla stock (NASDAQ: TSLA) remains one of the most closely watched equities in the market, with potential for significant volatility ahead.