Shares of Tesla Inc. made a notable climb on Wednesday, reaching a crucial chart level before retracing as bulls struggled to gain traction. This setback indicates that the downtrend, which has persisted for the past four months, remains unbroken. However, early indications suggest that another test may be imminent, with a hopeful outlook for bullish investors.

During morning trading, Tesla's stock saw a 2.4% surge, reaching an intraday high of $252.75. At this point, bulls found themselves contending with a descending trendline that originated from the 10-month intraday high of $299.29 achieved on July 29. This trendline connected the peaks witnessed in mid-September and early October.

Unfortunately for the bulls, the bears emerged victorious in this battle, leading to a retreat in stock prices. As a result, the stock slumped and concluded the day with a 1% decrease.

According to the Dow Theory, a widely followed market analysis technique that has stood the test of time, a trend remains intact until a definitive reversal signal occurs. The clearest indication of a reversal is the breaking of a trendline. Until Tesla's stock manages to surpass the four-month downtrend line, which is expected to extend to around $251.57 by the end of the week, the bears will retain control.

Despite this, there is a silver lining as the bulls have managed to breach one downtrend line, suggesting the presence of momentum in their favor. The Relative Strength Index (RSI), a popular tool used by chart watchers to gauge momentum, had been on a downward trend since mid-June, even before Tesla's stock price reached its peak. However, earlier this month, the RSI surpassed the downtrend line, initiating a new uptrend and offering hope that the stock price may follow suit.

Nevertheless, it is essential to consider that the downtrend since July is a short-term phenomenon. Even if the stock manages to break through the trendline, it will still have to contend with a longer-term downtrend line located just above it. This particular line originated from the all-time intraday high of $414.50 achieved on November 4, 2021, and currently projects slightly above $273.

While the short-term trend remains downward, the bulls have made significant strides along the medium-term uptrend that began in early January.

Over the past three months, Tesla's stock witnessed a decline of 5.3%. However, on a year-to-date basis, it has soared by an impressive 97.6%. Comparatively, the Nasdaq-100 Index—