Taking a look at Tesla after its recent earnings release, currently its stock price is trading at around $265.54 a share.

Taking a look at Tesla after its recent earnings release, currently its stock price is trading at around $265.54 a share. Tesla has posted its first positive quarterly revenue since October of last year, while also beating analysts’ earnings expectations. The EV giant reported earnings per share of $0.91 on revenue of $24.93bn. Regarding revenue, that is a 47% increase from the same period in 2022 and a 108% increase compared to 2021. Which demonstrates its dominance and growth within its industry. From a technical outlook, we can see that the price has dropped after the earnings release. One reason for this is profit taking as there has been a sharp rise since May 15th. Hence, we now could see a retracement before hopefully heading higher, especially as we have comfortably broke and closed above the triangle back in June (analysis for this can be seen in our previous posts). Key support now sits at $238.54 (green oval), a break below this level may see the price fall towards the upper trendline of the triangle ($217.84 – previous key resistance).

On the other hand, if we see signs of consolidation we would then look towards the upside. At present, resistance levels sit at $279.54 then at $299.29 and then a tough level at $313.76 (red oval). $313.76 would be a difficult level to overcome, but if this occurred, a move towards $330-$340 could then be possible. Looking at the technical indicators, RSI is slightly faltering as it now reads 63, it did read 69 suggesting the stock was almost overbought. This was another reason why we have seen some downside this week. However, the MACD is still conformably positive.