Tesla Inc. (NASDAQ: TSLA) shares were trading higher Monday in anticipation of the company’s third-quarter earnings report.

Tesla is expected to report its third-quarter earnings of $1.52 per share, which represents year-over-year growth of 100% from 76 cents per share reported in the same period a year ago.

Tesla was up 3.21% at $870.11 at the close.

Tesla Daily Chart Analysis

  • After breaking out of what technical traders call a pennant pattern, the stock has been continuing to push higher and is near all-time highs.

  • The trendline will likely continue to hold as support in the future unless the stock sees an above-average volume day pushing below the trendline. The stock may see strong resistance near its all-time highs at the $900 level.

  • The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is in a period of bullish sentiment.

  • Each of these moving averages may hold as a potential area of support in the future.

  • The Relative Strength Index (RSI) has been flying higher the past few days and now sits at 81. This puts the stock well into the overbought area where it is seeing much more buying pressure than selling pressure.

See Also: Why Tesla Shares Are Rising


What’s Next For Tesla?

Bulls look to be in complete control of the stock and want to see the stock continue to trade above the higher low trendline. Bulls would then like to see the stock be able to break above the all time highs. New all time highs may show the stock is ready to continue to push higher.

Bears would like to see the stock start to cool off and then fall below the higher low trendline. This may show the stock is ready to see a long term trend change if the stock can hold below the trendline. Bears would also like to see the stock fall below the moving averages for sentiment in the stock to turn bearish.

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