Chart of the Week: Tesla
Hey, good morning everybody. Happy Wednesday. It’s time for our chart of the week. It’s June 10. And we’re gonna focus in on a little spicy meatball over here. This is Tesla; TSLA.
And let’s take a look at this chart. It’s not looking all that great right now. But I think that once the SpaceX IPO comes out, this stock is going to get some traction, it’s gonna get some interest in too. So I think using this recent pullback is gonna to be a good opportunity to add some shares, maybe even buy some call options, too.
The downtrend is certainly in place. It’s very well defined here. Lower highs, lower lows. But we do have a small series of lower highs and higher lows in place, so that tells us that Tesla is in the middle of no-man’s land, or no-trend right now.
Relative strength has been weaker.
We’ve seen good on-balance volume.
MACD has rolled over a little bit. We did have a very high-selling print on Friday, June 5. You can see that big red bar down over here.
Prior to that we did have some support in these higher lows from April, but that fell. And we’re now down below the 20 day moving average, but in between the 50 and the 200 day moving average. This is the 200 day moving average right here.
So the jury’s out on this one right now.
But I do think that the fact that the stock has sold off quite sharply, from about $455 all the way down to $396. That’s about a little more than a 10% move down – that was probably enough to wash out some of the froth and some of the speculative players that were in Tesla.
I’m not looking for a huge bump here, maybe right back up above the $450 level, slightly higher than that. If we do get a bit higher than that $460 level, we do have a gap that needs to fill at about $475. I think the stock can get up there.
This needs to get a little bit of energy to the upside. Fill this little space over here and get moving upwards. So that could happen within a couple of days.
Again, this SpaceX IPO is going to create a lot of enthusiasm, a lot of excitement, and I think Tesla’s gonna be a beneficiary of that.
So take a look at Tesla; TSLA. At least for a short-term trade – maybe a week or two – maybe even a little bit longer term if we get above that resistance.
Thanks so much for watching everyone, and I”ll see you guys next time.
