Current trend

Shares of Tesla Inc., a leading manufacturer of electric cars, have grown significantly against the victory of the Republican Party representative Donald Trump in the US presidential election and are trading at last July’s high.

Throughout the presidential race, the company’s head, Elon Musk, supported Trump’s candidacy, donating 75.0M dollars to his campaign headquarters. In response, Donald Trump promised to include the businessman in the new administration, appointing him head of the Commission on Government Efficiency, which deals with budget expenditures. This will allow Tesla Inc. and Space Exploration Technologies Corp. (SpaceX) to receive new contracts. Cooperation with the state over the past decade has allowed the company to receive 15.4B dollars.

In addition, the new government may cancel the incentives for electric vehicle manufacturers introduced by the Joe Biden administration and introduce significant duties on Chinese imports. It will have a negative impact on Tesla Inc.’s competitors, primarily Chinese ones but not on the company, as it may avoid pressure due to its large sales volume and business diversification.

Support and resistance

The trading instrument has consolidated above 281.25 (Murrey level [6/8]), allowing it to reach 312.50 (Murrey level [8/8]) and 328.12 (Murrey level [ 1/8]). In case of breakdown of the middle line of Bollinger bands 250.00 (Murrey level [4/8]), a decline to the area of ​​218.75 (Murrey level [2/8]) and 203.12 (Murrey level [1/8]) may follow.

Technical indicators confirm the formation of an upward trend: Bollinger bands and Stochastic are directed upward, and the MACD histogram is increasing in the positive zone. The chart’s exit beyond the upper Bollinger band does not exclude a limited correction to ​​265.62 (Murrey level [5/8]).

Resistance levels: 312.50, 328.12.

Support levels: 250.00, 218.75, 203.12.

Trading tips

Long positions may be opened from 290.00 or after a reversal at ​​265.62, with the targets of 312.50, 328.12, and stop losses ​​275.00 and 250.00, respectively. Implementation period: 5–7 days.