Tesla Motors Inc (NASDAQ: TSLA) shareholders have had quite a bumpy ride so far in 2016. Incredibly, after starting off the year with about a 40 percent dip down to around the $140 level, Tesla has rebounded and is now down only 1.7 percent on the year.
But how much technical damage did the big dip do to Tesla’s chart, and has the big bounce-back put it on a more bullish technical trajectory? Here’s a closer look at Tesla’s chart.
THE GOOD NEWS
The good news for Tesla bulls is that the stock’s recent surge has broken it above the downward-sloping resistance line that had been in place since mid-2015. The stock also had no difficulty re-claiming the $180 level, which had served as support several times prior to the stock’s 2016 swoon and could have potentially been significant resistance during the bounce-back.
It’s hard to believe that a stock can make a 71 percent push higher in a matter of weeks and not have a more bullish chart, but unfortunately Tesla’s January sell-off did a lot of damage to the chart.
THE BAD NEWS
Despite the big surge, Tesla has…
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