Algorithm Predicts Tesla (TSLA) Stock Price to Rally +57% By the End of 2023

 Key takeaways

• Tesla (NASDAQ:TSLA) could be preparing for a major move to the upside, according to BasicTradingTV on TradingView
• The CoinCodex price prediction algorithm reinforces bullish sentiment by predicting a +57% move by December 2023
• TSLA stock has more than doubled year-to-date and looks to be forming another multi-year bull flag that could take it to new highs over the long term

Will history repeat itself with another Tesla breakout?

Tesla (NASDAQ:TSLA) has been in a consistent uptrend during 2023, climbing +104% YTD as it begins to approach its former all-time high. The current price of TSLA is $251.12, which places it at a key stage in terms of its market structure according to BasicTradingTV on TradingView.

BasicTradingTV has marked a possible bull flag formation on the TSLA chart that can be traced back to its 2021 high. The trader stated that he expects a “massive market swing” when TSLA breaks out of its current price pattern, in a move that could mirror a multi-year bull flag that was formed in the past, between 2013 and 2019.

The set-up shared is based on the monthly timeframe, with the trader stating that this is the best way to “build real long term wealth.” Tesla has been expanding its share of the EV market consistently in recent years and has provided its stakeholders with a positive earnings per share figure for twelve consecutive quarters.

As things stand, the TSLA stock price finds itself at the upper trend line of the possible bull flag formation. If TSLA can successfully break through this resistance level, BasicTradingTV expects a move towards $450 — an 80% gain from the current price.

TSLA trading set-up shared by BasicTradingTV on TradingView

Algorithm predicts +57% gain for TSLA before retracing on the 1-year price prediction

The CoinCodex price prediction algorithm expects the price of TSLA to break through the upper resistance level that has been highlighted by BasicTradingTV. The algorithm has forecasted a +57% move by December this year, which would provide a re-test of the stock’s former all-time high that was placed in 2021.

If the algorithm’s prediction unfolds, market structure would begin to resemble a double-top. From here, the algorithm has forecasted a drop in value over the next year with a -38.16% price prediction by October 2024.

The market structure expected from the algorithm mirrors the one highlighted by BasicTradingTV quite closely. A double-top followed by a retrace back to the lower support level from the multi-year bull flag would indicate continuation for TSLA on longer time horizons, which could mean that a bullish break-out is not too far away.

1-year price prediction for TSLA, via CoinCodex

Bottom line: Market structure seems bullish for TSLA on the long term

Barring any major changes, price action for TSLA looks positive at this moment in time. While the stock does find itself at a key resistance level, the algorithm has forecasted a quick push past the upper trend line in a move that could take it back to all-time high in the next two months.

On longer time horizons, both BasicTradingTV and the CoinCodex algorithm are in agreement that TSLA’s current market structure will hold up. This would represent a second multi-year bull flag for TSLA in the past 10 years, which could open the door for another impulsive wave to the upside and another all-time high as well.

TSLA stock price year-to-date