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[Video] Tesla’s Rebound May Have Topped

Whilst Tesla (Tesla CFD) appears set to snap a 3-month losing streak, we think its rally from the June low has had its day and prices could revert to its bearish trend.

June has been a good month for Tesla so far, currently trading 19.8% higher and, at one-point rallying nearly 33% from its low, it seems very likely to snap a 3-month losing streak. However, with 24.7% of traders net short on Tesla, we question how sustainable its upside is.

  • Technically, resistance has been found below the 50 day-averages (both standard and exponential averages), and the rally has failed to retest the June and August 2016 highs.
  • If prices remain below last week’s high, the bias remains bearish and we await for bearish momentum to take prices back in line with its dominant downtrend.

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