Today was a big day for TSLA as it pushed to new all-time highs, and the rally didn’t come out of nowhere. The strength we saw into the breakout was being telegraphed ahead of time through relative strength, and that’s what I want to walk through here.
Above is a 15-minute chart of TSLA, with SPY in the lower pane for comparison. For the past 8 days TSLA and SPY were moving in lockstep. The highs and lows were closely correlated, which is what you would normally expect when a stock is simply following the broader market. Nothing about that action stood out as unusual or noteworthy.
That changed at point A. While SPY was making a new swing low, TSLA did not fully confirm that weakness. The divergence wasn’t dramatic, but it was enough to get my attention. Instead of accelerating lower with the market, TSLA began to show subtle signs of buying pressure. These early divergences are easy to dismiss because they don’t look impressive on their own, but they often serve as the first clue that something is shifting beneath the surface.
By the time we reached point B, the relative strength became much more obvious. SPY continued to trend lower, pressing to fresh lows, while TSLA carved out a clear higher low. This is the type of behavior I’m always watching for. When a stock refuses to follow the market lower and instead begins to stabilize and turn up, it tells me that institutions may already be positioning.
Once resistance was broken at 482, the message was clear. TSLA broke out and rallied strongly into the close, confirming what the relative strength had been hinting at earlier in the day. From that point forward, momentum stayed firmly to the upside.
Looking ahead, I’d like to see a pullback toward the 482 level for a potential buying opportunity. Former resistance often becomes support, and if TSLA can hold that area, it would further validate the strength we’re seeing. We’ll see how things unfold, but for now, I really like the character of this move.
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