Shares of Tesla Inc. have been on quite the roller coaster ride over the past several years.
Beginning in 2013, TSLA took wall street by storm with its epic bull run that has since seen the company's market valuation increase to over $33 billion.
TSLA was not always a wall street darling though. For years after its initial public offering (IPO) in June of 2010, TSLA traded between $20 and $40 a share. In fact, Elon Musk, Tesla's CEO, thought that Tesla might fail when he initially co-founded the company.
In January of 2012, TSLA traded as low as $22.64 a share. To put this in perspective, this was less than the $23.89 closing price for the stock on its very first day of trading!
There's no doubt that some initial investors likely sold out of frustration. In retrospect though, they are probably very disappointed with their decision to throw in the towel on Musk and his team early on, because TSLA is now up over 1000% since 2012!
As highlighted on the weekly chart above, +DMI crossed above -DMI in late 2012 and continued to hold above it. This was an important trading signal that the bulls were beginning to show signs of increasing strength over the bears on the intermediate time-frame.
Soon after, in the Spring of 2013 ,TSLA broke above the $40 overhead resistance level that had held the stock down for so many years and closed convincingly above it. Since then, the stock has never looked back.
When we last wrote about TSLA two months ago, we noted that the $240 area was a key resistance level that the bulls would have to overcome to retest the stock's previous all time highs made in February of 2014.
In early August, TSLA closed above the $240 level and the bulls have continued the momentum push higher ever since. The stock closed at all time highs on Tuesday, finishing at $284.12 a share.
+DMI is still above -DMI on the weekly chart, so the bulls dominate over the bears for the time being. Down below, the $240 and $260 areas would be support levels to watch out for.
If bulls keep the pressure on and the overall markets stay in the green, it will be interesting to see if a push towards $300 is made and how the stock behaves at that level.