Tesla Stock Surges Past $250 Resistance Level, Bond Market Pessimism Looms

In an aerial view, Tesla cars sit parked in a lot at the Tesla factory on April 20, 2022 in Fremont, California. Tesla reported first quarter earnings that far exceeded analyst expectations with revenue of $18.76 billion compared to expectations of $17.80 billion. PHOTO BY JUSTIN SULLIVAN/GETTY IMAGES

Shares of Tesla Inc (NASDAQ:TSLA) surpassed the $250 resistance level this week, potentially disappointing Call sellers. The stock has shown a similar pattern in the previous week and has experienced a notable 38% rally in the past month.

However, the bond market’s growing pessimism ahead of key events poses a potential hurdle to the stock’s rally. The upcoming testimony of Federal Reserve Chair Jerome Powell before Congress and the Bank of England’s monetary policy decision are factors to watch.

A line of electric vehicles of the model Y is pictured during the start of the production at Tesla’s “Gigafactory” on March 22, 2022 in Gruenheide, southeast of Berlin. – US electric car pioneer Tesla received the go-ahead for its “gigafactory” in Germany on March 4, 2022, paving the way for production to begin shortly after an approval process dogged by delays and setbacks. Shares of Tesla Inc (NASDAQ:TSLA) surpassed the $250 resistance level this week, potentially disappointing Call sellers. PHOTO BY PATRICK PLEUL/GETTY IMAGES

Let’s examine how options traders are considering crucial trading levels for Tesla stock this week:

Resistance: Tesla closed at $260.54 on Friday. Options expiring this Friday show relatively higher open interest at three levels. The $260 Call strike exhibits notable open interest, suggesting it could act as a resistance if the stock experiences a correction. If Tesla maintains its upward momentum, the $280 and $300 levels could then become significant resistance levels.
Support: On the downside, there is relatively higher open interest at the $250 Put strike, indicating that traders may not anticipate the stock to drop below this level in the event of a correction.

It’s important to note that open interest figures provide a general indication of support and resistance. Significant stock price movements or macro events can lead to substantial shifts in open interest numbers.

Produced in association with Benzinga

Edited by Saba Fatima and Newsdesk Manager

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