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Tesla (TSLA) Bulls Are Back in Charge

Shares of Tesla (TSLA) was bullish in February into April but has been in a choppy correction since then as we can see in the daily chart. In December, price action reflects a bullish continuation. 

Tesla (TSLA) Daily Chart 12/27

(click to enlarge)

V-Shape Reversal Followed by Choppy Consolidation:
- The daily chart shows a very obvious V-shape reversal back in February/March.
- This to me a a strong bullish indicator for the medium to long-term.
- However, since April price was retreating in a choppy manner. The relative choppiness to the prevailing V-shape rally suggested that this is a period of consolidation. That the dominant mode has become bullish.

Bullish Continuation Breakout:
- In December, we saw price surge from around 180 to above 200 in a rally that broke above a falling trendline resistance.
- The RSI has pushed to 70, and price is above the 100-, and 50-day simple moving averages (SMA), about to test the 200-SMA.
- Moreover, price is now challenging the October high, which are the first key resistance pivots above 200. 

Expecting Pullback:
- If the market is bullish, we might not see a strong pullback.
- But if we do see resistance around 215, let's anticipate at least a minor 5% pullback.
- We should anticipate support at 200.
- The RSI should not fall below 40. 

- Above 215, the next resistance will be in the 235-240 area. 
- The high on the year just under 270 will also be in sight as Tesla (TSLA) enteres 2017 on a bullish note,.