Tesla Shares Rebound 3.45% as Technical Indicators Signal Bullish Reversal

Tesla (TSLA) closed the most recent session with a 3.45% gain, reaching $483.37. This rebound follows a sharp 4.62% decline on December 17, suggesting a potential support zone near $467.26. Candlestick patterns indicate a bullish reversal, with a long upper shadow on the December 18 candle confirming rejection of lower prices. Key resistance appears at $495.28 (December 17 high), while support levels at $466.20 and $441.67 align with recent intraday lows, creating a consolidation pattern.
Candlestick Theory
The price action reveals a bullish engulfing pattern at the December 17–18 juncture, with the December 18 candle’s body completely covering the prior day’s bearish candle. This suggests short-term buying pressure. Additionally, a descending wedge pattern is forming between the December 17 high ($495.28) and the November 13 low ($396.34), indicating a potential breakout to the upside.

The 50% Fibonacci retracement level at $430.14 has acted as a psychological floor, with recent volume surges ($46.11B on December 18) validating the move higher.
Moving Average Theory
The 50-day MA (approx. $435) and 200-day MA (approx. $365) show a bullish "golden cross" configuration, with short-term momentum outpacing long-term trends. The 100-day MA (~$440) currently supports the price, and the 50-day MA crossing above the 100-day MA reinforces the uptrend. However, the 200-day MA remains a critical threshold; a break above $483.37 would confirm a sustained bullish bias, while a retest of the 50-day MA could trigger consolidation.
MACD & KDJ Indicators
The MACD histogram expanded positively on December 18, aligning with the price surge, but the signal line has yet to cross above the MACD line, suggesting momentum may be building. The KDJ (Stochastic) indicator shows %K at 85 and %D at 75, signaling overbought conditions, though divergence between price and oscillator levels has not yet emerged. This implies the uptrend may persist, but a pullback to the 20-level ($410) could precede a resumption.
Bollinger Bands
Volatility has expanded, with the upper band at $503.35 and the lower band at $456.35. The price currently sits near the upper band, indicating overbought territory and a probable consolidation phase. A break above the upper band would signal heightened bullish momentum, while a retest of the midline ($480) may act as a temporary support/resistance pivot.

Volume-Price Relationship
Trading volume on December 18 spiked to $46.11B, a 9.0% increase from the prior day’s $50.94B, validating the price rebound. However, volume has declined in recent sessions (e.g., $24.92B on December 11), suggesting weakening momentum. The On-Balance Volume (OBV) curve shows a positive slope but has flattened, indicating buyers may be exhausting their capacity. A sustained volume surge above $50B would strengthen the case for a breakout.
Relative Strength Index (RSI)
The 14-period RSI stands at 68, nearing overbought territory (70 threshold). While this warns of potential exhaustion, Tesla’s historical volatility suggests a pullback to the 40–50 range is more likely than a reversal. A drop below 50 would signal bearish momentum, but the RSI’s alignment with the price action (no divergence) implies the uptrend remains intact for now.
Fibonacci Retracement
Key retracement levels at 38.2% ($460.14), 50% ($430.14), and 61.8% ($400.14) have historically influenced Tesla’s price. The current level of $483.37 aligns with the 23.6% retracement ($473.12) and upper band of the descending wedge, suggesting a test of the 38.2% level before a potential consolidation. A break above $495.28 would target the 78.6% retracement at $530.14, but this requires sustained volume and momentum confirmation.
Confluence between the 50-day MA and 38.2% Fibonacci level at $460.14 suggests this area will be a critical battleground for near-term direction. While indicators like RSI and KDJ caution against overextension, the volume surge and bullish candlestick patterns imply a higher probability of continuation, albeit with increased volatility. Divergences remain absent, supporting the view that the uptrend is structurally intact.