Electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) is among the notable market winners after the September 10 trading session, as the overall stock sector seeks to move past recent bearish sentiments.
Currently, the stock is trading at $226, gaining over 4% in 24 hours. On the weekly chart, TSLA is up over 7%.
Tesla stock prediction
Regarding the next TSLA move, trading expert Peter DiCarlo, in an X analysis on September 11, pointed out that the stock will likely maintain a bullish momentum in the coming weeks, setting a possible target of between $280 and $300. However, he noted that several catalysts must be triggered for this feat.
Picks for you
According to DiCarlo, after the equity faced rejection on September 7, Tesla was expected to pull back towards the $200 to $190 range, a level he noted is for institutional and smart money. However, Tesla has rebounded from around $210 to about $227, marking an 8% increase. This move has reignited bullish sentiment.
With a target of $280, DiCarlo suggested that the key to a rally lies in breaking through the resistance level of around $230. He described a scenario in which Tesla needs to push up to $230, especially with favorable Consumer Price Index (CPI) data. If the price breaks through this resistance and then successfully retests it, it would confirm a reversal in trend.
Tesla stock’s condition to achieve $280
If this break of structure occurs and the weekly chart closes with a higher high on the BX trend indicator, it would signal a confirmed bottom for Tesla. This would set the stage for a rally towards $280 within the next two to three months, particularly as the market anticipates the Robotaxi event.
DiCarlo further explained that understanding smart money levels is crucial. Using a Fibonacci retracement level, he identified the “Golden Pocket” between the 0.618 and 0.786 levels as the institutional buying zone. The optimal trade entry, or smart money level, is from 0.786 to 0.826 Fibonacci. He noted that the uptrend could reverse if Tesla pulls back past the 0.826 Fibonacci level.
Overall, the bullish sentiment around Tesla could come as welcome news, considering that the equity has been weighed down by a slowdown in the EV market for the better part of the year. The company has been dealing with slowing demand while battling increasing market competition amid sustained fears regarding a possible recession onset.
These struggles were highlighted in Tesla’s Q2 2024 results, where the company recorded a revenue of $25.5 billion, reflecting year-over-year gains of 2.3%. However, the EV’s net income disappointed, dropping over 45% YoY to $1.48 billion.
Wall Street’s take on Tesla stock
Despite DiCarlo’s bullish trend prediction, 31 Wall Street analysts at TipRanks believe the stock will likely see a downside in the next 12 months. In this line, the analysts project TSLA will plunge to $211 on average, dropping by 6%. In a bullish scenario, they predict Tesla will trade at $310, while a low forecast has been set at $85.
In the meantime, some analysts maintain that despite the slowdown in the EV market, Tesla’s unique product offering is a compelling reason to buy it. For instance, analysts from Deutsche Bank pointed out that the company should be viewed more as a technology company due to its attempt to reshape different industries. They indicated that TSLA would likely hit a target of $295.
In summary, as Tesla aims to build on the bullish momentum, investors should remain cautious. The economy is still exhibiting general weakness and is likely to be influenced by a raft of macroeconomic factors, such as possible Federal Reserve interest rate cuts.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
