09Aug11:13 amEST

An Objective Look at Tesla's Parking Job

Parking job, as in, Tesla Motors' stock continued to be parked in a massive range. 

The sideways range TSLA has been operating in for nearly fourteen months now, illustrated below on the weekly timeframe, drives home the message of just how financially (and emotionally) draining choppy, rangebound charts can be for bulls and bears alike. 

Truth be told, if you had only seen and heard Tesla bulls and bears duking it out on social media and financial news you would be a bit surprised to see that the stock has, overall, gone nowhere since June 2017. 

That said, bulls have successfully defended backtests to the $270 level, an area from which the stock broke higher in the earlier part of 2017 after spending several years in a prior sideways range (following its initial explosion [no pun intended] onto the scene in March 2013 as a premier momentum issue). Thus, bulls have the long-term edge until proven otherwise, meaning bears must hold the stock down below its 200-day simple moving average, something hey have failed to do on several occasions this year when you view the daily chart. 

Overall, Tesla is essentially operating in a massive $270/$290 up through $370/$390 range. 

Bears are now betting on the SEC setting an example in the social media era regarding CEO Musk's loosey-goosey tweeting habits of late. Of course, there are plenty of bear arguments about the firm's fundamentals. But until they can hold TSLA under the 200-day moving average and eventually breach the prior early-2017 breakout below $270, TSLA is going to at least stay rangebound and possibly cause massive bear financial casualties with upside resolution. 

For now, the stock's daily oscillations with considerable headline risk means most speculators should likely lay off the action. 

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