Currently, that is how I am feeling with Tesla . In fact as I write this, the indicators are beginning to catch up to my sentiment on Monday. Let's take a look at some Tesla , Inc. ( TSLA ) charts.
Once Upon a Time
Once upon a time TSLA was a leader off the March lows. If you check the chart below, you will notice that TSLA actually bottomed out before the Nasdaq-100 QQQ did. I am comparing the charts to further put into perspective how divergent the Nasdaq-100 truly is even compared to the most talked about stock by the public. Perhaps there are too many people on one side of the trade?
Another way at looking at this chart is in relation to time and destination. The stock markets tend to move together on average. I say on average because stocks do not move together all at once. Some stocks peak before other do but that does not mean the index (the average) peaks. Tesla , may have peaked and other stocks are supporting the index make new highs.
On the chart above I compare the CMF and . Both of which looked a lot better earlier this week. Both indicators are confirming my sentiment, slowly trending lower as price grinds sideways. Not shown here are the 10 and 20 . Both of which are still supporting price. Quite frankly, that is the only thing about the TSLA chart. I have one more chart below to show how perhaps the market is getting closer to a top.
The S&P 500 SPY chart above illustrates the divergence within the market. Note the declining CMF and divergence on as price makes a new high. Bull strength is waning. For TSLA , unfortunately...$1000 may have to wait. Bias: Bearish.
Talk of S&P 500 inclusion
As you all are aware there has been talks of TSLA being including into the S&P 500 . This would surely be quiet the accomplishment for Mr. Musk and company. Though, in order for inclusion TSLA needs to be profitable in Q2. If TSLA dips I'll be buying heading into next season as there will be plenty of hype heading into it.
Until next time. Happy trading!