Tesla Jumps 6% To Extend Rally As Technicals Signal Bullish Momentum

Tesla (TSLA) surged 6.04% in the latest session, extending its winning streak to three consecutive days with a cumulative 6.47% gain, reflecting renewed bullish momentum. This analysis synthesizes key technical perspectives using the provided historical data.
Candlestick Theory
Recent sessions formed a robust bullish pattern: a Piercing Line reversal on 2025-09-08, followed by a Three White Soldiers confirmation over the next three days. Significant resistance is evident near $370, where prices stalled on 2025-09-05 (high: $355.87) and 2025-09-11 (high: $368.99), indicating a critical supply zone. Support holds around $346, aligning with consolidation lows on 2025-09-09 and the 2025-08-25 swing low ($335.03).
Moving Average Theory
The 50-day SMA ($332) recently crossed above the 100-day SMA ($328), generating a bullish golden cross and signalling strengthening intermediate momentum. Both remain below the 200-day SMA ($310), confirming a primary bullish trend. The latest close ($368.81) sits decisively above all three averages, reinforcing positive alignment. Sustained trading above $350 supports the continuation of the intermediate uptrend.
MACD & KDJ Indicators
The MACD shows a bullish crossover emerging above the signal line as the histogram turns positive, suggesting increasing upward momentum. Meanwhile, the KDJ presents a potential divergence: while price hit a higher high on 2025-09-11, the K-line (79) and D-line (75) remain below their prior peaks from early September, indicating slowing short-term momentum despite the price rise. The J-line’s position near 87 flags a potential overbought condition developing near-term.
Bollinger Bands
A pronounced squeeze occurred preceding the three-day surge, indicating compression and reduced volatility – a typical precursor to directional breakout. The subsequent surge pushed prices to the upper band ($366), with the current close ($368.81) exceeding it. This breakout breach suggests strong upward momentum, though a sustained move outside the band may signal overextension without consolidation. Expanding bands support continued volatility and potential continuation.
Volume-Price Relationship
Volume surged significantly during the most recent rally (103.8M shares vs. ~72M average over preceding down days), validating the bullish price action with strong buyer conviction. The highest volume day coinciding with the +6.04% gain reinforces breakout legitimacy. Lower volume on the smaller 2025-09-10 (+0.24%) and 2025-09-09 (+0.16%) gains implied consolidation before the powerful surge. This volume profile confirms accumulation preceding the breakout.
Relative Strength Index (RSI)
The 14-day RSI calculates near 65.2, placing it in the bullish but not overbought territory. While moving decisively higher from its mid-September dip near 55, it remains below the overbought threshold (70), suggesting room for further upside before typical exhaustion might occur. Its steady ascent alongside price supports the current uptrend's health and diverges from the KDJ’s short-term caution signal.
Fibonacci Retracement
A major swing low occurred on 2025-06-05 at $284.70, with the recent peak at $368.99. Key retracement levels derived from this rally are: 23.6% ($347.35), 38.2% ($338.50), and 50% ($326.85). The price action firmly respected the 23.6% support ($347.35) last week, bouncing decisively. Confluence exists here as this level coincides with horizontal support near $347. This makes $347-$350 a high-confidence support zone. The next significant resistance targets are $388 (161.8% extension of recent pullback) and psychological $400.
Confluence Points and Divergences
Confluence: Multiple indicators align near $347-350. This zone acts as critical horizontal support, the 23.6% Fibonacci retracement, and aligns psychologically. Volume confirmed the breakout above this level. The moving averages cluster below here ($310-$332), adding layers of support.
Divergences: A noteworthy divergence exists between the KDJ indicator showing potential overbought/slowing momentum (with the J-line near 87) and the MACD + RSI suggesting continued bullish momentum. Additionally, while price broke the upper Bollinger Band, the RSI is not yet overbought. These mixed signals suggest potential near-term consolidation or pullback before a resumption of the uptrend, especially given proximity to the $370 resistance.