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Shares of Tesla (TSLA) - Get Free Report have been stuck in a very narrow range for the last four weeks. This consolidation pattern is holding above a key support zone as daily volume has completely dried up. Today the stock appears to be perking up and may be on the verge of an upside breakout.

Ahead of what could be positive news from the company, Tesla remains in a fairly low risk buy zone and is setting up well for more upside.

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In early July, Tesla's powerful post-Brexit rebound carried shares back above both its flat-lining 50- and 200-day moving averages. Since then the stock has been building a very solid base just above these two key indicators. While this monthlong consolidation has been constructive, a volume spark will be needed to get Tesla back in rally mode. Until then, the stock remains range-bound as underlying support builds.

In the near term, patient Tesla investors should take a more bullish view of the stock. Tesla is treading water just above a low-risk buy zone. As long as shares hold above the $216 area, the current basing action remains intact. The key support zone runs from $226-to-$221. Ideally Tesla should remain above the early August low of $221.40 through month end. On the upside, a close above last week's high of $229.50 would be a important sign that the stock is gaining traction. A somewhat high short interest ratio of 7 will add extra fuel to the rally as last week's high is cleared.

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