Tesla was one of the biggest movers in late 2019 and early 2020, more than tripling in value on a monster short squeeze. TradeStation highlighted the trend in early December and now it's back on our radar.
TSLA has pulled back to an area where two levels are in play:
First, it probed its 200-day moving average yesterday for the first time since October. (Click here for the "Distance from MA" script featured on this chart.)
Second, it tested old highs around $385 from 2017 and 2018.
This may create the potential for classic trend following if current levels hold.
There have also been some upgrades this week: Bank of America yesterday and Morgan Stanley today. Both raised it from the equivalent of "sell" to "hold," mostly based on the depth of its recent pullback.
In conclusion, there's still plenty of volatility and uncertainty out there. But TSLA was one of the strongest names before coronavirus hammered the market. Investors hoping to put money to work may want to see if these levels hold in coming sessions.
TSLA has pulled back to an area where two levels are in play:
First, it probed its 200-day moving average yesterday for the first time since October. (Click here for the "Distance from MA" script featured on this chart.)
Second, it tested old highs around $385 from 2017 and 2018.
This may create the potential for classic trend following if current levels hold.
There have also been some upgrades this week: Bank of America yesterday and Morgan Stanley today. Both raised it from the equivalent of "sell" to "hold," mostly based on the depth of its recent pullback.
In conclusion, there's still plenty of volatility and uncertainty out there. But TSLA was one of the strongest names before coronavirus hammered the market. Investors hoping to put money to work may want to see if these levels hold in coming sessions.
