Please ❤️like and 🔁share with fellow Tesla traders/investors
#Tesla closed yesterday at $373.71 (+1.54%) and is trading higher today ahead of tonight’s earnings announcement.
The stock has triggered a short-term bullish reversal, but the bigger question remains: is this genuine buying pressure or simply short covering ahead of a major catalyst?
*
The short-term technical picture has indeed improved.
After approaching critical channel support at $348.21 last Friday, #TSLA rebounded and closed Tuesday above $370.50, triggering a buy signal.
That breakout keeps $383.71 in immediate reach, followed by $390.86, the upper boundary of the current channel, potentially within 3–5 trading days.
As long as TSLA remains above $348.21, a broader recovery toward the $390s remains possible over the next 2–3 weeks.
*
However, the longer-term picture is considerably more complicated.
Three months ago, TSLA broke below the lower boundary of a nearly two-year channel, triggering a major sell signal targeting $229.80. That bearish objective remains valid while the stock trades below $396.10.
The $396.10–$401.45 resistance zone is therefore the most important technical battleground.
A confirmed close above $401.45 over the coming weeks would reverse the longer-term bearish outlook and activate a six-month buy signal targeting $554.20, resistance at the top of a six-year channel.
Until then, the possibility of a substantial bearish rotation remains.
*
What happens if earnings disappoint tonight?
$370.50 is the first critical level to watch. A close back below it would neutralize the recent bullish momentum and put $348.21 back in play, potentially within 1–2 trading days or by Friday’s close.
However, a decline toward $348.21 wouldn’t necessarily mean the rally is over.
That channel support could contain selling through next week, allowing TSLA to stabilize and recover toward the $390s over the following 2–3 weeks.
*
The more serious warning would come from a confirmed close below $348.21.
Such a breakdown would suggest that an important October high is already in place, opening the door to $332.21 within 3–5 trading days and $306.53 within approximately 2–3 weeks.
There is a possibility of a bottom forming around that point through the remainder of November.
Beyond that, descending channel support currently sits at $273.64 and is projected to converge with the original $229.80 bearish target during Q1 2027.
*
So, #TSLA enters earnings with improving short-term momentum but remains below major long-term resistance.
– Above $370.50, the bullish setup favors $383.71 and $390.86.
– Below $370.50, momentum weakens and $348.21 becomes the next critical test.
– A break below $348.21 would significantly strengthen the bearish case.
Ultimately, $396.10–$401.45 remains the dividing line between a temporary rebound within a bearish structure and a potentially much larger bullish reversal toward $554.20.
Tonight’s earnings could determine which scenario takes control.
*
If you enjoyed this update, please 👍🏻 like and 🔁 share
Watch the full #TSLA Trading Plan for October 21, 2026, in this short video 🔽