Can Tesla Break Through Resistance? Musk Working 24/7

Binni Ong
05-28

Earlier in my post here on 15 May, I said that Tesla’s Breakout Rally Has Target at Projected Target $365. Price of Tesla surged up from 346 as predicted and is now trading at 362.

On May 27, 2025, Elon Musk announced his full commitment to $Tesla Motors(TSLA)$ operations, stating he is working “24/7” and staying on-site to focus on core projects. This comes amid softening electric vehicle demand, with Tesla’s April sales in Europe dropping 49% year-over-year—contrasting with broader EV market growth in the region.

Current Price: $362.89 (as of May 28, 2025)

Chart Observations:

  • Resistance Zone: Price is approaching a key resistance area between $370–$420, where previous rallies have consistently faced selling pressure.

  • Previous Low as Resistance: Around $380, a former support level is now acting as a resistance, adding to the overhead pressure.

  • Trend Momentum: TSLA remains in a short-term recovery trend. However, the RSI is nearing overbought territory, indicating that upside momentum may be slowing and a pullback could occur if resistance holds.

Implications:

The $370–$380 range is a critical test zone. A decisive break above may signal continued strength, while rejection here could lead to short-term consolidation or a pullback.

Using DLCs for Short-Term TSLA Trading

  • Long DLCs (e.g. $TESLA 3xLongSG261006(TSYW.SI)$ ) generally increase in value when TSLA's price rises. They may benefit if price breaks above the $380 resistance level and sustains upward momentum.

  • Short DLCs ( $TESLA 3xShortSG261006(TSXW.SI)$ ) typically increase in value when TSLA’s price falls. These may gain if price fails to break resistance and pulls back.

Important Considerations:

  • DLCs offer fixed daily leverage, magnifying both gains and losses.

  • They are intended for short-term trading only due to daily rebalancing effects.

  • Traders should be aware of risks including price gaps, volatility, and potential for amplified losses.

Hit the follow button to stay updated! I post valuable trading and investing insights every week—don’t miss out on being the first to know!

For more information about DLCs, visit https://dlc.socgen.com/en/education/handbook 

Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

Musk-Trump Breakup... & Reconcile? Do You Dare to Buy Tesla Now?
Musk threatens Trump, claiming Trump wouldn't have become president without his help. In return, Trump threatens to cut Tesla's government subsidies. The two have completely fallen out. Whose side are you on in this drama? And is now a good time to buy the dip on Tesla?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment