Tesla Stock Price and Forecast: Solid gains on Monday despite virtual recall as $715 still targeted

• Tesla stocks gives up some gains on Friday.
• TSLA still set for further gains after wedge breakout.
• A software recall on Tesla cars in China, not hurting premarket performance.

Tesla shares gave up some recent ground on Friday as the stock closed just over 1% lower. But the shares still registered some impressive gains earlier in the week so Fridays set back is only a minor one. The stock powered through some key levels on Wednesday and Thursday in perfect technical setup. On Friday the stock held its ground with an inside candle. An inside candle is one where the daily high and low do not exceed the previous day’s high and low so the candle range is inside the previous one. An inside candle is often a feature of a breakout where the stock consolidates before pushing higher again. $635 had been a key level we had identified here at FXStreet as the volume profile was thin above this price. All this should have resulted in a price acceleration and this played out perfectly as Tesla stock powered through the level. $667 was the next resistance and this corresponded with the wedge formation Tesla stock has been in since record highs from January. Tesla again did not disappoint and charged through the level. Friday then, as mentioned, saw a consolidation, inside candle with a modest 1.17% loss to close the week at $671.87, up nearly $50 on the week, not too shabby!

Tesla key statistics

Tesla stock forecast

The weekend might be a good artist but this weekend was not too kind to Tesla stock with some negative data coming out of China. News that Tesla is to recall up to 300,000 Chinese made and imported Model 3 and Model Y cars hit the tape on Saturday. Chinese regulators said the move is linked to assisted driving which drivers can activate accidentally. The recall is for software and is remote according to Reuters so may not be as big an issue as the headlines would lead one to believe. Certainly Monday’s premarket action is limited with Tesla stock little changed at $668.60 as of 0530 EST 0930 GMT.

All this keeps the technical picture strongly bullish and a test of the next big resistance at $715 firmly on track. Above here the volume shelf or profile drops off quite a lot. On the right of the chart below, we can see red and green bars signalling the volume at each price point and how thin it gets above $715. This should lead to a price acceleration just like we saw on the break of $635. There is a gap to $657 between Wednesday and Thursdays open and the market does love to fill a gap, so this $657 is holding the short term bullish trend along with the 9-day moving average close by.