Tesla (TSLA) Stock Price and Forecast: Tesla bounces as RSI flags oversold, targets $591 resistance

• Tesla shares stage nice bounce from key support zone at $539.
• Tesla has been struggling after the bitcoin crash and results woes.
• $591 key resistance level, a break could see $667 tested.

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Tesla stock forecast

Tesla has been in a classic downtrend since late January with a series of lower highs and lows. The break of $780 in late February was what really ended any hope of bulls returning as that key support was broken, then retested and failed. While Thursday's bounce was encouraging there is still work to do. 

A beautiful 4% move from Tesla on Thursday sees it retrace up to the 200-day moving average at $590. This is now the key level and it has a confluence of resistance with the $591 line, identified. A break of this and the nearby 9-day moving average, will turn the recent bearish tide back in favour of the bulls. A break above $591 could accelerate to $625 as there is not of volume despite the steep fall, so a form of vacuum. Failure to break $539 can also be taken as a victory for bulls on the longer-term horizon as it will result in a higher low, albeit only marginally, but they still count. Clearly then $539 is now the key, break and it probably sees Tesla slip further to the bear target. Hold and Tesla can stabilize and break of $625 sees bulls back in control. The momentum oscillators RSI, CCI, and ROC have all been close to or signaling oversold conditions recently.