Despite the drama we saw with Tesla (TSLA - Get Report) and its stock price in the first half of 2019, the second half has been off to a quieter start.

Shares did take a tumble in July after the company reported its second-quarter earnings results. But after a rocky August -- like it was for many stocks -- Tesla stock is starting to show some promise.

The bullish price action comes even as Porsche -- a unit of Volkswagen (VLKAY) (VLKAF) -- shows off its all-electric Taycan sedan. It also comes as Tesla begins to rollout its insurance product.

As is usually the case with Tesla, both bulls and bears can make an argument that benefits their camp on both of these bits of news. But investors might be wise to take a simpler and less "noisy" route: Following the price action.

Trading Tesla Stock

Daily chart of Tesla stock.
Daily chart of Tesla stock.

It's not that the price action in Tesla has been overwhelmingly bullish. It's just that, the stock has held up very well over the past few weeks.

Let's zoom out before zooming in.

A nasty downtrend had developed from the December high, pressuring Tesla stock from $380 to $177, after a disastrous breakdown in May. It was a decline of more than $200 from peak to trough, a 53% pummeling.

After rebounding, though, this downtrend resistance mark began acting as downtrend support for Tesla stock, until shares bottomed out at $211 last month. Since then, TSLA shares have been putting together a series of higher lows, a bullish technical development that shows investors are buying the dips.

Now Tesla is running into some resistance, though. That comes from both the $230 level and the 50-day moving average. As shares boil over those marks, though, it opens up even more upside if the bulls are able to step up.

If TSLA stock can clear the $245 mark, it will begin filling its July gap. Near $254 lies the 61.8% retracement. Over that puts the 200-day moving average on watch, with the 50% retracement just above that.

Should Tesla rally to $268 -- reclaiming the 61.8% retracement and filling the July gap in the process -- it will represent a rally of 15%.

However, if the 50-day moving average holds as resistance, bears will aim to crack the 20-day moving average at $226. If they can, it will put Tesla stock below short-term uptrend support and put the backside of prior trend resistance on watch, as well as the August lows at $211.

In short, watch the 50-day and 20-day moving averages. Above the former and bulls can take Tesla stock higher. Below the latter and bears could press shares down to last month's low.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.