TradeStation

Is Tesla Tired?

NASDAQ:TSLA   TESLA INC
Tesla has obviously been a major growth stock in 2020, but the chart may be showing some fatigue 12 months after its blistering rally began.

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, MACD has trended lower ever since its euphoric peak after the stock split. That suggests momentum is powering down.

Third, you have the 50-day simple moving average ( SMA ) and upward trend line starting in late June. TSLA’s on pace to close below both today for the first time in several months.

Finally, volume 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 relative strength 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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Comments

Gentlemen, you forget the fundamentals, like they don't exist at all. And the fundamentals are simple- the company is well-managed, with a strong balance sheet, great market opportunity and next to none competition.

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.
+5 Reply
RogueCleaner lapserdak
@lapserdak, nah man, share price is way cheap now. keep buying. its going to the moon. 🩳
Reply
lapserdak RogueCleaner
@RogueCleaner, slowly, but it does. it's going to be 1000 in two-three years.
+3 Reply
RogueCleaner lapserdak
@lapserdak, you are too pesimistic , its going to 2000 next year.
+2 Reply
T-r-X RogueCleaner
@RogueCleaner, 5000+ rocketship
Reply
@T-r-X, no no.. 1 million a share bro.
+1 Reply
Karam08 RogueCleaner
@RogueCleaner, I'm buying just 2 shares and gonna wait for that million dollar price point :D
Reply
awatverbakel lapserdak
@lapserdak, haha that's right there are no fundamentals. Its a big bubble!
Reply
VERY OVERVALUED FOR A LUXURY CAR COMPANY IN A TIME OF MASS UNEMPLOYMENT..
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.
+4 Reply
VeryLittleGravitasIndeed contemplatingcrypto
+2 Reply
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