First and most important was the muted reaction to Wednesday’s better-than-expected quarterly report. The biggest takeaway seems to be concern about another capital raise more than the results. After all, TSLA has yet to reclaim its previous highs from the last stock sale in early September.
Next, has trended lower ever since its euphoric peak after the stock split. That suggests momentum is powering down.
Third, you have the 50-day ( ) and upward starting in late June. TSLA’s on pace to close below both today for the first time in several months.
Finally, has been waning as the range tightens. This creates the risk of a stampede out if stop losses begin to trigger.
One last potential issue with TSLA is the in other names like General Motors and Ford Motor . There’s a growing sense that 2021 could bring strong auto sales (given the average age of existing vehicles). If that happens, we could see a rotation back to traditional names.
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This future-telling by a chart may actually be very useful. If you manage to sell-off, it will be a great opportunity to buy even more stock.
AAPL SEEMS TO LOOK SIMILAR TO TESLA. THESE COMPANIES ARE BOTH SELLERS OF LUXURY GOODS IN A TIME OF ECONOMIC UNCERTAIN AND HIGH UNEMPLOYMENT WHICH COULD CAUSE CONSUMERS TO QUESTION THEIR PURCHASES MORE, ESPECIALLY THESE HIGH TICKET PRODUCTS. COMPANIES LIKE FB AND SNAP ON THE OTHER HAND LOOK MUCH MORE STABLE, MAYBE BECAUSE THEY OFFER FREE ENTERTAINMENT PLATFORMS.