Market Minute: Tesla Near Potential Breakout Heading Into Tuesday’s Earnings

Few stocks can grab public attention the way Tesla (TSLA) does, so many traders are likely gearing up for next week’s earnings report in the Tuesday, April 22 postmarket session. Shares have seen many wild swings to the upside and the downside in recent weeks as the tariff news-driven environment for the stock market continues to produce high volatility.

From a technical perspective, price shows a rather interesting setup heading into the week. Despite the recent huge whipsaw price movements, the shorter-term trend remains down, and price is still confined within the boundary of a downward sloping channel beginning with the all-time highs of 488.54 on Dec. 18. Additionally, price is still below most major moving averages and momentum failed to make any kind of bullish breakout after the Relative Strength Index (RSI) saw several rejections near the 50-midline.

However, when looking at the broader picture, one could argue that a longer-term, much more modestly sloping upward trendline that began after an earnings gap up almost a full year ago is still in play despite some intraday downside tests. This trendline currently comes in near 235, so this could be a notable area for traders to watch for potential support. Beyond that, an old gap from Oct. 23 matches up with subsequent double-bottom lows near 218, which marks another area to watch.

To the upside, there is a confluence of resistance starting near 250, which is the downward trendline off the highs and the yearly Volume Profile Point of Control (area of heaviest trading), with the 21-day Exponential Moving Average just above. After that, the next set of major highs come in near 290, and also coincide with the 63-day Exponential Moving Average for greater potential emphasis as a possible upside area to track.