14Oct10:46 amEST

Tesla's Chart on Autopilot

It has been a while since we checked in on shares of Tesla, Inc. Elon Musk's idiosyncrasies notwithstanding, the long-term chart for TSLA is actually rather anti-climactic in its action in recent quarters. 

On the first monthly chart, below, we can see as much, with corrections below $200 finding buyers for years now. On the other hand, rallies above $300 have eventually been met with selling.

The net result is a whole lot of activity, opinions, buzz, accusations, drama...and a stock which is currently trading at the same price it was back in early-2014. 

That eventually will change. And predicting TSLA's next directional move has become a novelty of sorts, with some calling for the Pink Sheets while others looking for a Berkshire-Hathaway-during-its-heyday type of boom. Naturally, with TSLA's sizable short position in the float, we will get such strong opinions both ways. Adding Musk's personality on top of that only sweetens the pot and raises the stakes, or so it seems, when the stock eventually does declare its next big move. 

In the meantime, it is worth revisiting the name this morning since TSLA is one of the very top performers early on in the QQQ ETF, as top-heavy tech stocks are trying to offset weak small caps in the first two hours of trading. 

On the second chart, below, of TSLA's daily, we have a likely 200-day moving average (yellow line) test incoming with earnings looming October 23rd. If bears fail to turn away TSLA from its 200-day after earnings, I would view it as a missed opportunity to really take the stock back below under $200 after quarters of lagging-type of action. 

So for now, TSLA's chart is on long-term autopilot. But after revisiting the name for the first time in a while we expect that to change likely after earnings and into the end of 2019. 

The Energy/Materials Bear Ma... Getting Un-Zuck


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