Tesla’s (NASDAQ: TSLA) stock appears to have entered a new bullish phase, with technical indicators suggesting that the electric vehicle giant may be gearing up for a strong rally toward the $600 mark ahead of its Q3 earnings release.
The outlook comes as Tesla shares continue to hold above the $400 level. At the close of Tuesday’s session, the stock traded at $442, down 1% on the day, but up nearly 10% year-to-date.
Now, according to TradingShot’s analysis, Tesla has completed a bearish correction phase and is now forming a new bullish leg within a rising channel pattern.
In a TradingView post on October 21, the analyst noted that the stock has successfully held above the 50-day moving average (MA), a key level that has historically signaled the start of major upward moves.
The previous bullish leg, which began after the price rebounded from the 100-day MA, produced an impressive 59% rally. If the current pattern follows a similar trajectory, Tesla’s next higher high could surpass the $600 long-term target, reinforcing bullish momentum.
Momentum indicators also support this optimistic view. The Moving Average Convergence Divergence (MACD) is nearing a bullish crossover, a signal that has historically preceded strong rallies, while the Relative Strength Index (RSI) has bounced from its five-month ascending support line, showing renewed strength after a period of consolidation.
Tesla stock fundamentals
Notably, the improved sentiment comes after a challenging start to the year marked by declining sales in key markets and backlash over CEO Elon Musk’s political views.
However, investors are increasingly optimistic that the upcoming earnings report could reignite interest in the EV maker as it targets reclaiming the $500 resistance zone.
For the third quarter, Tesla reported deliveries of 497,000 vehicles, while consensus estimates project earnings per share of $0.53 on revenue of $26 billion.
At the same time, investors will be watching how structural challenges, including the expiration of the $7,500 U.S. federal EV tax credit, might affect future demand and weigh on the company’s financials.
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