Tesla (TSLA): A firm chart pre-earnings

Tesla (TSLA): Positive technical setup into earnings

Tesla (TSLA) reports quarterly earnings after the close today (10/22). While assessing a stock’s technical setup can be challenging heading into the potential volatility of an earnings event, TSLA’s charts remain constructive on both an absolute and relative basis.

TSLA continues to show rising 26- and 40-day moving averages (DMAs) on both its absolute price chart and relative to the S&P 500, confirming a positive near-term trend.

We previously highlighted TSLA as tactically positive in Straight from the Chart on August 27 and September 11.

Technical setup

• Base breakout remains intact: TSLA’s February–September base breakout is holding above 367–355, maintaining a positive bias and projecting an upside target near 518. A similar breakout in TSLA relative to the S&P 500 reinforces this bullish setup.

• Bullish wedge breakout: The stock is attempting an upside breakout from a falling (bullish) wedge pattern that began in early October. This breakout remains firmly in place above 440–434 (defined by chart levels and the 13- and 26-DMAs) and suggests upside potential toward 465 and 488, with the top of the wedge near 470.

• Support zone post-earnings: The 434 to 406 area, defined by rising 26- and 40-DMAs, represents an important near-term support zone that needs to hold following earnings.

• Additional chart supports: Key supports are found at 411 (wedge low), 402–396 (the September 15 upside gap), and 367–355 (base breakout level).

• Bigger picture potential: While it’s premature to assume a major breakout ahead of earnings, a decisive move above the 465–470 zone could confirm a much larger base pattern extending back to December 2024, signaling an important longer-term reversal.

Chart 1: Tesla (TSLA) (top) and relative to the S&P 500 (bottom)

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