Tesla, Inc (TSLA  ) closed near flat on Monday, ahead of key economic data set to print this week, which will offer investors clues as to whether the Federal Reserve will hike rates again in September or apply a pause.

The EV giant reversed course on Aug. 21 after trending lower within a steep downtrend, which began on July 19. On Monday, the stock formed a higher high, confirming a new uptrend may be in the cards.

An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.

Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.

Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

Although the stock is showing bullish signs, if the stock market reacts bearishly to this week's data a downtrend could resume for Tesla. If that happens, volatility in the stock market is likely to pick up.

Traders wishing to play the potential volatility in the stock market can use MIAX's SPIKES Volatility products. The products, which are traded on SPIKES Volatility Index, track expected volatility in the SPY over the next 30 days.

The Tesla Chart: Tesla formed a higher high on Aug. 22 at $240.82 and a higher low at the $228.18 mark on Thursday, which negated the downtrend. On Monday, the stock formed another higher high, which confirmed a new uptrend is on the horizon.

• On Aug. 22, Tesla broke up bullishly from a descending trend line, which is a strong indication that a rebound is on the horizon. The stock formed a bearish hanging man candlestick on Monday, which indicates a retracement could come on Tuesday before the uptrend possibly continues.
• Bullish traders want to see Tesla regain the 21-day exponential moving average (EMA) as support. If the stock can regain that area and trade above it for a period of time, the eight-day EMA will cross above the 21-day, which would give bullish traders more confidence going forward.
• Bearish traders want to see big bearish volume come in and break Tesla down to form a lower low, which would suggest the recent upswing was a bull trap. If that happens, the stock may retrace to test the 200-day simple moving average as support.
• Tesla has resistance above at $254.98 and at $265.10 and support below at $234.35 and at $225.03.