Tesla stock setting the stage for ‘end-of-year fireworks show’; Is $500 next?
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Tesla’s (NASDAQ: TSLA) stock has been on an upward tear in the fourth quarter, with technical indicators suggesting sustained momentum as the year ends. The stock received a significant boost from Donald Trump’s election victory, with investors optimistic about his close ties with CEO Elon Musk. Additionally, better-than-expected Q3 2024 earnings pushed the stock to new highs. However, the recent rally has encountered resistance at $500, and short-term weakness has emerged. At the close of the last session, TSLA was valued at $421.06, down more than 3%, extending a weekly loss of 4.4%. Despite this, Tesla’s stock remains up nearly 70% year-to-date in 2024. TSLA one-week stock price chart. Source: Google Finance Tesla stock’s end-year momentum Regarding TSLA’s technical setup, an analysis by charting the TrendSpider platform suggests that Tesla might be gearing up for a possible ‘end-of-year fireworks show.’ In an X post on December 20, the platform noted that after a sharp rally starting in late October, Tesla is now consolidating in a bullish flag. This setup often signals the continuation of an upward trend. In this case, the current consolidation phase could pave the way for another breakout. TSLA stock price analysis chart. Source: TrendSpider Supportive technical factors back this potential move, with volume-by-price data showing healthy buying interest between $250 and $300, creating a support base. Additionally, lighter trading volumes near $400 to $450 suggest fewer barriers to further upside. Puedonymous stock trading expert Micro2Macr0 also identified another bullish technical setup for Tesla share price in an X post on December 20. The analysis noted that Tesla appears to be entering a ‘Phase 4’ of its long-term breakout. The stock has decisively breached a key downtrend resistance line intact since its 2022 peak. TSLA stock price analysis chart. Source: TradingView This breakout aligns with a strong…
