Above is a daily chart of TSLA, and it’s been doing an impressive job testing and bouncing off the rising trendline drawn from the April lows. This trendline has acted as a solid support level over the past several months, confirming the overall bullish structure in the stock.
We’re now approaching key resistance in the 467 to 489 range, a level that has already been tested three times. Whenever price approaches a well-established resistance zone like this, it’s important to pay attention to volume behavior. Over the past three trading days, volume has been declining, which is a cautionary signal. Lower volume as the stock moves higher often indicates that buying enthusiasm is waning, making a pullback more likely in the near term.
Ideally, for TSLA to continue pushing higher into this resistance zone, we would want to see an expansion in volume, showing renewed buying pressure. At the moment, however, the declining volume suggests we may see a short-term pullback before another buying opportunity emerges.
That said, the bullish trend remains intact as long as TSLA stays above the rising trendline. This trendline has proven to be a reliable guide for identifying support levels, and it provides a clear reference point for traders. In my view, staying above this trendline keeps TSLA in a favorable position, and pullbacks near support should be viewed as potential entry points for those looking to participate in the next leg higher.
For more of my daily market breakdowns, you can head over to my homepage: https://therelativestrengthtrader.blogspot.com/
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