Tesla Trend Analysis May Point Higher in Near Term
Updated
TSLA seems to be trending higher in the near term. Note that seasonal weakness typical from late-August to mid-October warrants caution and perhaps smaller position sizing.
The trend analysis points higher based on the following factors:
1. Decisive close above the 8-day EMA today, August 12.
2. Upward breakout from wedge pattern. The wedge pattern began forming about 3-4 months ago as shown on the accompanying chart.
3. Upward breakout short-term resistance level at 700.00.
4. Both 8-day EMA and 21-day EMA turned bullish around July 29, 2021.
Fibonacci analysis also confirms support around the $700 price level.
While not necessarily a member of TSLA's cult-like following nor a skeptical bear, I do think TSLA has presented many trading opportunities in both options and the stock over the past year. It has been one of the strongest large-cap US stocks both technically. Recently, it has shown fundamental strength, with its EPS growing 230% YOY and its sales 98% YOY vs the comparable quarter last year.
The trend analysis points higher based on the following factors:
1. Decisive close above the 8-day EMA today, August 12.
2. Upward breakout from wedge pattern. The wedge pattern began forming about 3-4 months ago as shown on the accompanying chart.
3. Upward breakout short-term resistance level at 700.00.
4. Both 8-day EMA and 21-day EMA turned bullish around July 29, 2021.
Fibonacci analysis also confirms support around the $700 price level.
While not necessarily a member of TSLA's cult-like following nor a skeptical bear, I do think TSLA has presented many trading opportunities in both options and the stock over the past year. It has been one of the strongest large-cap US stocks both technically. Recently, it has shown fundamental strength, with its EPS growing 230% YOY and its sales 98% YOY vs the comparable quarter last year.
Note
TSLA has rocketed 47% higher since this original post on August 12. Finding strong growth stocks with stellar fundamentals and solid technicals can lead to incredible gains.
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