- Tesla shares rally as Bitcoin bounces toward $ 40,000.
- TSLA breaks above the 200-day moving average on a strong move.
- TSLA is targeting $ 625 as the next resistance target.
Tesla stocks have continued to show that oscillators can prove useful in predicting tipping points, as stocks posted a clear 4.4% gain on Monday to close at $ 606.44.
Tesla stocks have found support at a confluence of indicators, with the 200-day moving average and the shorter-term 9-day moving average being a pivot point for stocks on Monday. Tesla broke these levels and is now targeting $ 625. FXStreet’s analysis pointed to a breakout of $ 591 as a key on Monday, writing “Any break above 591 could accelerate to $ 625 as there is not much volume despite the sharp drop, a form of vacuum.”
Tesla Stock Forecast
The previous failure to break out of $ 539 on May 19 can also be taken as a small win for bulls on the longer-term horizon, as it will result in a higher low, albeit only marginally. Now Tesla has done the hard part, recovering the 200-day moving average and returning to consolidation zone 2. $ 667 is now the next target for the bulls and the trend line at $ 715 beyond.
Tesla, with its investment in Bitcoin, has tied itself to the vagaries of a volatile asset for now, so Bitcoin will have to be closely watched for guidance on TSLA stocks. Over the weekend it was reported that Tesla is suffering a market value loss on its Bitcoin investment, but that may no longer be the case as Bitcoin falls back towards $ 40,000. Tesla is still in a classic downtrend with a series of lower lows and highs. Staying above $ 539 will end the series of lower lows and breaking the $ 667 zone will end the series of lower highs. These are the pivot points.
Breaking this $ 539 level will likely cause Tesla to slide further towards the bearish target in the $ 440 region.
Brackets: 539, 500, 465 and 430
Resistors: 625, 667, 715, 781 and 900
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