To The Moon

In the earlier article on $Tesla Motors(TSLA)$ , I wrote that “Tesla at a Crossroads: Bearish Volume Signals Near Key Support Raise Concerns” (read article).

Highlighted that the price was near a support zone:

Support Level at $315 to $325 : Price is very near to a support zone now.

Price rebounded from a low of $325 indeed!!!

Traded higher towards high of $367 and fell to close at $337.80 last friday.

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Technical Analysis of Tesla (TSLA)

1. First Bearish Moving Average (MA) Cross After Failing at Previous High

• The 21-day SMA has crossed below the 55-day SMA for the first time since TSLA’s failure to sustain above its previous all-time high.

• This bearish crossover signals a potential shift in trend, confirming the current correction.

2. $328 is a Critical Support Level

• The $328 zone is a key support area, as past price action suggests strong buying interest.

• A breakdown below this level could trigger further downside momentum.

3. Watching for Bullish Divergence

• The MACD and RSI are approaching potential divergence setups.

• If price retests support but momentum indicators show strength (higher lows), this could signal a rebound opportunity.

4. Key Reversal Level at $395

• For the ongoing correction to reverse, TSLA must close above $395, reclaiming previous support-turned-resistance.

• A move above this level would indicate buyers regaining control and potentially resuming the uptrend.

Two scenarios for Tesla right now.

Tesla Price Scenarios

1. If Price Holds at $328 – A rebound is likely, especially if bullish divergence appears on MACD and RSI. Key upside targets are $360-$375, with a break above $395 confirming a trend reversal. Traders can use long DLCs to capitalize on the rebound.

2. If Price Breaks Below $328 – Further downside is expected, with the next support at $300-$310 and potential drop to $280-$290. Traders can use short DLCs to benefit from the decline.

DLC Trading Strategy

• Use long DLCs if price holds above $328 and shows signs of reversal. (e.g. $TESLA 3xLongSG261006(TSYW.SI)$

• Use short DLCs if price breaks below $328, signaling further weakness. ( $TESLA 3xShortSG261204US$(TSUW.SI)$ )

For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.