In January 2022 we saw Tesla’s stock (TSLA) approaching its 2-year best respected SMA lines. These lines were the 227-day and the 234-day SMA lines, and at that time they have been supporting TSLA for over 2 years:
A year and a month after, and following a volatile trading period, TSLA is approaching the same line of defense, but this time – from below.
Looking at the current daily chart of Tesla’s stock, we can see the 222-day and the 226-day SMA lines being respected by TSLA as resistance:
Zooming in:
Although technically the SMA period is not identical – the support line was the 227-day SMA and the resistance line is the 226-day SMA – these MA lines should be seen as marking areas of support and resistance rather than pointing to a specific price.
This concept is demonstrated in TSLA’s weekly and monthly charts:
On the weekly chart, the best respected moving average support lines are sitting at $95.51 (393-week SMA) and $95.30 (394-week SMAs).
On the monthly chart, the best supporting lines are at $95.39 (92-month SMA) and $86.15 (104-month SMA).
Still, TSLA bounced off the support area indicated by these 4 different MA support lines (lowest trade price was $101.81).
When looking at the daily, weekly, and monthly time frames, the support and resistance areas become clearer:
- The daily chart shows the resistance lines hovering above, but also it shows the 11-day EMA ($198.43) and the 14-day SMA ($197.03) support lines that TSLA has been riding over in the last month.
- The weekly chart shows the support lines that TSLA bounced off of, but also it shows the 28-week SMA ($208.88) and the 43-week SMA ($224.73) resistance lines hovering above.
- The monthly chart is similar to the weekly chart in showing TSLA bouncing off the support lines right into the resistance lines, the 10-month SMA ($232.41) and the 6-month EMA ($198.53).
How will TSLA trade from here? No one knows, but we sure know the best respected moving average support and resistance lines that define support and resistance areas for TSLA.