Shares of Tesla Inc., a leading manufacturer of electric cars, are trading at 185.00.

On the daily chart, the price is correcting within the ascending channel 231.00–178.00, trying to retreat from the support line.

On the four-hour chart, the quotes continue a smooth upward movement, preparing to break the mid-April high of 195.00. A consolidation above it allows them to reach the channel resistance line of 230.00. If it is held, the sideways movement will continue, and a decline to the low of last week at 167.00 is likely.

Technical indicators maintain a poor buy signal: fast EMA on the Alligator indicator are held above the signal line, and the AO histogram forms ascending bars in the buy zone.

Trading tips

Long positions may be opened after the price rises and consolidates above 191.20, with the target at 215.50. Stop loss — 183.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 179.50, with the target at 158.60. Stop loss — 187.00.