Tesla is poised for a breakout with expected upside to 395 or 420, but requires caution due to speculative nature.

I'm very curious about the latter, Charles. You've included Tesla in your top three stocks here. How are you currently dealing with Tesla? Well, to be honest, there's some speculation involved.

There is, as you know, some suppressed resistance around the 380 price. I think the real breakout area lies notably around 384, but there is a level of consolidation that I see, and the price action is making me optimistic.

The recovery point after today's decline clearly showed the presence of short-term buying demand even at these recent high levels. Interestingly, this point has been historically controversial in recent weeks, as we have seen trading that is more risk-averse than risk-oriented.

So I don't know if the price will break through this area, but I think it's poised for a good breakout similar to what we saw with Google on Friday. Again, this is an excellent investment opportunity, but it quickly collapses and causes you a huge loss.

Therefore, I advise you to be cautious, but I expect a strong rise to 395. Therefore, I prefer to hold the October 5 contract at an execution price of 395 at 550 or lower. The stop loss will be at 50%. The potential profit would be around 100%.

This rise will affect the currency's performance at the 200-day simple moving average, as breaking through this level is a strong starting point . This is very similar to what we saw with the Meta price surge following the Muse news, where the price was battling the 200-day simple moving average just a month ago, and is now approaching all-time highs .

So, I don't think Tesla will make such a move , but it wouldn't really surprise me if it approached the 200-day simple moving average , and if it broke through that level, it could jump to 420 in the near term.

Okay, Rick. So, we expect a rise of at least $30. Do the technical indicators suggest a possible breakout?

Well, according to one metric, we are already seeing a breakthrough. As you can see, we have a downtrend line with a white line here. We have surpassed that level. We will remain above this trend line.

However , we have not yet broken above our relative highs near 384. Also, there is a recurring support level that we saw at the next red line near 391. So, we have filled the gap here, at the green line near 373.

This level now stands out as support. So, the downtrend line has been broken at this point , but we still have some work to do to break through the important horizontal levels that stand out.

In this case, we use the 251-day exponential moving average, which is an exponential moving average and not a simple moving average, as the exponential moving average tends to focus on recent price movements, making it more responsive here.

However, every moving average remains a lagging indicator by its nature because it is based on past price movements . After this quick example, as you can see, the 251-day exponential moving average in orange, which represents one year, is at 377.36.

The price is very close to this level now. Therefore, if we surpass this level, it will represent another important threshold that must be crossed . It also aligns closely with the downward trend line .

This would be interesting, and might increase the likelihood of a breakthrough. The Relative Strength Index (RSI) is trending upwards, with a slightly rising green trend line and a moderate slope, but we are recording new relative record highs above our recent peaks.

Therefore, bullish speculators would like to see a crossover above the 70 level to further confirm the upward trend. As for trading volume, the next nearest closing point is from 392 to 409, which represents an upward trend.

There is virtually no heavy trading activity below these levels. Therefore, bullish speculators would like to see this trading volume point regained around the 400 level for further upside.

Well, we are now watching Tesla stock up by about half a percent at 376.90, and we expect a move above the 400 level in the final trade.