Tesla turned before the rest of the market, and quickly doubled from its low. Now the electric-car maker is parked above a key level, making traders wonder if it may accelerate higher.TSLA bottomed on March 18, four sessions before the
S&P 500 capitulated. It also passed above its 50-day simple moving average (SMA) on April 14 and has remained there, even with the broader market struggling at that line.It squeezed into a tight range as it consolidates and is now trying to break out of a small triangle. The stock will be in focus this week because earnings are due Wednesday afternoon.
While few companies have been immune to the impact of coronavirus on global economies, TSLA has actually had some positive news before its results. On April 2 the company said first-quarter vehicle deliveries would crush estimates (88,400 vs 79,900 forecast). Then on April 15, LMC Automotive estimated that registrations in the key Chinese market rose more than 400 percent between February and March.
Finally, some bigger perspective: TSLA’s market cap is $133 billion, but it still isn’t in the S&P 500 index. If it were, it would rank No. 41 between
McDonald’s and 
Medtronic. The real story here could be that a major growth stock for the next several years may be sitting right in front of us, in the middle of its second major historic move. Earnings are nigh, short interest is high and a brief consolidation phase may be in the rearview mirror.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.