Please ❤️like and 🔁share with fellow Tesla traders/investors
#Tesla rallied nearly 4% yesterday alongside the broader market rebound, closing at $368.06. The stock is approaching a critical short-term breakout level at $370.28 that could determine its next major move.
*
Despite the rebound, #TSLA remains in a longer-term bearish technical structure, trading below the major $396.10–$401.45 resistance zone.
This area combines the bottom of a nearly two-year rising channel, which TSLA broke below approximately three months ago, and the top of a descending channel that has defined price action over the past 9–10 months.
As long as TSLA remains below this zone, the longer-term bearish outlook remains intact, with $227.64–$229.80 still the ultimate downside target over the next six months.
*
However, the short-term picture is more constructive.
Tesla managed to hold above critical channel support at $348.05 during Friday’s sharp selloff, and yesterday’s rebound suggests buyers may be defending that level.
*
Now, $370.28 becomes the key bullish reversal trigger.
This level represents a former channel bottom and closely aligns with Friday’s high.
A daily close above $370.28 would suggest that the market has absorbed Friday’s bearish outside-day reversal and could confirm an important low for the week.
*
If TSLA closes above $370.28, the first upside target becomes $381.97, potentially within the same trading session.
More importantly, such a breakout could open the door to a rally into the $390s by the end of next week.
But there’s a catch.
*
Even if Tesla reaches the $390s, the $396.10–$401.45 zone is a significant resistance and a potential selling opportunity. This area could contain buying pressure through the remainder of the year.
For 2–3 week swing traders, the preferred framework remains buying near the upper $340s and selling into the $390s, provided those technical levels continue to hold.
*
On the downside, $348.05 is the critical support to watch.
A daily close below $348.05 would signal that the rebound has failed and could trigger another significant selloff, targeting $306.37 over the following 2–3 weeks.
While $306.37 could provide temporary support and potentially produce another rebound toward the $340s, we ultimately expect this level to give way if the broader bearish structure persists.
A subsequent breakdown below $306.37 could expose $273.64 within another 3–5 weeks, with the longer-term $227.64–$229.80 target remaining in play.
*
The only development that would materially change the longer-term bearish outlook would be a sustained breakout above $396.10–$401.45.
That could open the door to a much larger rally toward the $550s over approximately six months.
*
So, $370.28 is the level to watch today.
A close above it could fuel a rally toward $382 and eventually $396–$401.
But failure to reclaim that level, followed by a breakdown below $348.05, would shift the focus back to $306.
The rebound is encouraging, but Tesla’s longer-term sell signal remains active until the $396–$401 resistance zone is decisively reclaimed.
*
If you enjoyed this update, please 👍🏻 like and 🔁 share
Watch the full #TSLA Trading Plan for October 20, 2026, in this short video 🔽