A top technical strategist at Fundstrat believes Tesla’s (TSLA) next breakout could unleash a powerful rally into year-end if one critical price level gives way.
Mark Newton, Fundstrat’s head of technical strategy, says the stock remains structurally bullish and is poised to accelerate once it clears resistance at all-time highs.
Should TSLA shatter the $488 price level, Newton believes that the stock will generate bullish momentum that could propel it into uncharted territory.
“Thereafter, a move to new all-time highs happens, which results in an acceleration that could carry TSLA north of $600. Thus, I remain quite bullish on TSLA technically despite the near-term range-bound activity, and would use weakness over the next couple of days (if this occurs) as a chance to buy dips.”
On X, Newton says that it is within the realm of possibility for TSLA to hit $750 by the end of the year after printing new all-time highs.
While the analyst is bullish on Tesla, he warns that a pullback may take place next month based on Fibonacci-based time percentages. He looks at TSLA’s 34-week rally from April to December last year, when it exploded by about 250% as his reference for a potential mid-November correction.
“For the future, my own time-based studies suggest that the middle part of November is also important based on different historical swings in the stock market. Thus, any possible mid-November weakness in my view should represent a very attractive risk/reward for owning TSLA into year-end.”
In the event of a market retracement, Newton notes that $411 is an important support level for TSLA, and a break could send the stock down to $370 – $380.
As of Thursday’s close, TSLA is trading at $448.
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