Tesla Jumps 14.54% in 3 Days as Technicals Signal Bullish Reversal

Tesla (TSLA) gained 5.67% to close at $326.09 in the most recent session, completing its third consecutive day of gains which have collectively pushed the stock up 14.54% over this short period. This price action sets a dynamic context for the following technical assessment of the past year’s data.
Candlestick Theory
A key reversal signal occurred on June 5th with a long-legged Doji candle closing at $284.70 after a steep intraday decline (-14.26%) from $324.55 to $273.21, suggesting capitulation and exhaustion of sellers. This was followed by a sequence of bullish engulfing patterns on June 9th and 10th, confirming upside momentum. Near-term resistance is evident at the June high of $327.83, while substantial support now emerges around the $284-$287 zone – aligning with the reversal candle’s body and the psychological $280 level.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish sequence: the price ($326.09) trades decisively above the 50-day (~$280), which itself lies above the 100-day (~$265), and both overshadow the rising 200-day SMA (~$250). This stacked configuration underscores a strong intermediate-to-long-term uptrend. The current price rebound off the 50-day MA on June 6th ($295.14) reinforces this dynamic support level as a key anchor for trend continuation.
MACD & KDJ Indicators
The MACD line crossed bullishly above its signal line on June 9th, emerging from negative territory and now trending toward the zero line. This signals strengthening upward momentum. Concurrently, the KDJ oscillator (especially %K and %D) has ascended sharply from oversold territory in early June to overbought levels (K=89, D=83), reflecting the intensity of the recent surge. While high readings imply overbought risk, the MACD’s alignment with price recovery suggests momentum remains positive in the near term.
Bollinger Bands
Bollinger Bands contracted significantly in late May/early June, culminating in the sharp downside break on June 5th that tagged the lower band. This volatility reset preceded the current expansion phase, with price rallying aggressively to breach the upper band ($320) by June 10th. Sustained closes above the upper band indicate strong bullish momentum, though often precede short-term consolidation or reversion to the mean-band (~$300). Watch for band expansion continuation to validate the trend’s vigor.
Volume-Price Relationship
The June 5th sell-off featured exceptionally high volume (292.8 million shares), signifying climax selling and potential capitulation. Subsequent recovery days, particularly June 10th (149.3 million shares) and June 6th (164.7 million shares), showed robust volume supporting upward price action. This volume confirmation enhances the credibility of the reversal and bullish continuation. Contrast this with lighter volume during the May downtrend (e.g., May 30th, 123.5m on a down day), highlighting negative divergence.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from oversold (<30) levels in early June, climbing to 67. This places it firmly in neutral territory, avoiding immediate overbought (>70) concerns while indicating room for further upside before potential exhaustion. The strong recovery from deeply oversold conditions supports the reversal narrative but requires monitoring for divergence should prices rally further without commensurate RSI strength.
Fibonacci Retracement
Taking the major swing low from September 2024 ($177) to the peak in June 2025 ($355.60), key Fibonacci levels become apparent. The recent pullback low ($273.21 on June 5th) held precisely at the 38.2% retracement ($273), affirming this technical support. The 50% level ($266) now acts as major secondary support. Upside targets include the 61.8% retracement ($323) – which current prices have breached – and eventually the 78.6% level ($340), aligning with multi-week resistance highs.
Confluence & Divergence Assessment
Notable confluence exists between the 38.2% Fibonacci support ($273) and the 50-day SMA ($280), which collectively underpinned the reversal. Volume validated the surge, MACD/KST signaled growing momentum, and price reclaimed all key MAs. The primary divergence occurred in late May when price made marginal new highs near $355 with lower RSI readings and contracting volume – a bearish warning confirmed by the subsequent drop. Currently, most indicators align bullishly short-term, though Bollinger Band penetration and KDJ overbought readings suggest near-term consolidation or pullback risk toward support at $300-$310 (psychological level + MA confluence) may be warranted before sustained advances toward the $340 resistance zone.