tech
Tesla's charts look attractive as the new year approaches. Here's why
Jay Woods of Freedom Capital Markets breaks down the charts on Tesla ahead of of 2026.
TL;DR
- Tesla stock exhibits key bullish technical highlights including a major breakout to new highs.
- Old resistance levels are expected to act as new support, providing defined downside risk protection.
- Momentum indicators like RSI and MACD are showing buy signals and pointing towards higher prices.
- A 5-year weekly chart confirms these technical themes, with momentum indicators not near extreme levels.
- A 10-year weekly chart reveals a cup and handle formation with potential upside targets around $600.
- The downside risk is estimated at approximately 13%, with a defined failure point around $420.
- The upside target of over 25% into the $600 area is considered likely given the setup.