Tesla’s Winning Streak: Stock Up 22.74% in 5 Days, More Room to Rise? – Tesla (NASDAQ:TSLA)

Tesla Inc. TSLA Shares have been on a strong rally lately, jumping 22.74% in the last five trading days and climbing 45.49% in the last month.

Despite rising just 1.22% year-to-date, the stock is still down 10.96% over the past year. The recent rally has put Tesla in the spotlight, prompting investors to wonder if the stock has room to grow.

Tesla Analysts See Downside, Despite Upward Momentum

The latest three ratings from analysts at TD Cowen, Truist Securities, and Guggenheim, all released on July 3, stand in stark contrast to the stock’s performance. With an average price target of $158.67, these analysts see a potential downside of 36.41% for Tesla.

This cautious stance, however, did not discourage the bullish sentiment fueled by technical indicators.

Also read: As Tesla rally hurts shorts, fund manager says ‘the fundamentals of the EV sector are too strong’ and Elon Musk-led company is ‘too well positioned’

Bullish Signals Abound for Tesla Stock

Chart created with Benzinga Pro

Tesla’s current price of $248.64 places it above several key moving averages:

• 8-day moving average: $222.42 (bullish)
• 20-day moving average: $197.29 (bullish)
• 50-day moving average: $185.30 (bullish)
• 200-day moving average: $205.40 (bullish)

These bullish signals indicate strong buying pressure and a potential continuation of the uptrend.

Chart created with Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator also supports the bullish outlook, showing a value of 16.86. Additionally, the Relative Strength Index (RSI) is at 81.98, indicating that the stock is overbought, which could suggest a short-term correction but also highlights the strong buying momentum.

Bollinger Bands analysis further confirms the bullish trend with the 25-day bands: $144.60 – $241.62, indicating an uptrend. These bands suggest that Tesla is trading well above its usual range, reinforcing the idea that the stock is under strong buying pressure.

The widening gap between the upper and lower bands of Tesla stock implies that the stock is experiencing wider price fluctuations, usually attributable to certain economic and market news related to or impacting the stock.

The verdict: the upward momentum could continue

While analysts remain cautious, Tesla’s technical indicators paint a different picture, suggesting that the stock’s bullish momentum could still persist. For investors interested in Tesla, technical analysis provides a compelling argument for a continuation of the bullish trend, even in the face of skeptical analyst projections.

Price Action: At last check, Tesla was trading at $251.17 per share, down 0.14%.

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