I haven't given my opinion on Tesla's stock in awhile. I'm gonna make a few points about the broader market and economy and then talk about TSLA specifically.
I'm not invested in stocks at all right now. I liquidated everything last week. I'm only going to trade in and out of stocks very quickly until we get some optimism on trade again or the market crashes ahead of a recession. I would be surprised if the broader market trades higher ahead of the Fed meeting next week, but if we get a rate cut or some extremely dovish forward guidance, look for it to rip higher and don't be too greedy with your profits over the next couple of months. The market will move higher if the Fed is more bearish on the economy than the data currently suggests, but that will eventually get priced in and all you'll be left with is bad economic data, a trade war, election uncertainty, and a market trading near all-time highs. Keep an eye on the unemployment rate in particular. Once it ticks up to 3.9-4.0 percent, it's rolling over and we'll be in a recession within 3-9 months and probably test the December lows and possibly lower.
This is a daily chart of TSLA. What you should notice is that the main trend is still down and has not been broken. We need two daily closes above that trend line, and in the near term I'd like to see us make a new high for this latest uptrend, which would give us a series of higher highs and a higher low, signifying a new uptrend in my opinion. While the stock is up premarket today before I started writing this, I'd be surprised to actually see us close higher today given yesterday's decline and close near the day's lows on high volume. Longer term, I'd also beware if we test the recent lows before Q2 earnings. I don't think we will, but a test of a low in that short of a time period in such a bad downtrend is not a good sign that it'll hold.
Good luck.
I'm not invested in stocks at all right now. I liquidated everything last week. I'm only going to trade in and out of stocks very quickly until we get some optimism on trade again or the market crashes ahead of a recession. I would be surprised if the broader market trades higher ahead of the Fed meeting next week, but if we get a rate cut or some extremely dovish forward guidance, look for it to rip higher and don't be too greedy with your profits over the next couple of months. The market will move higher if the Fed is more bearish on the economy than the data currently suggests, but that will eventually get priced in and all you'll be left with is bad economic data, a trade war, election uncertainty, and a market trading near all-time highs. Keep an eye on the unemployment rate in particular. Once it ticks up to 3.9-4.0 percent, it's rolling over and we'll be in a recession within 3-9 months and probably test the December lows and possibly lower.
This is a daily chart of TSLA. What you should notice is that the main trend is still down and has not been broken. We need two daily closes above that trend line, and in the near term I'd like to see us make a new high for this latest uptrend, which would give us a series of higher highs and a higher low, signifying a new uptrend in my opinion. While the stock is up premarket today before I started writing this, I'd be surprised to actually see us close higher today given yesterday's decline and close near the day's lows on high volume. Longer term, I'd also beware if we test the recent lows before Q2 earnings. I don't think we will, but a test of a low in that short of a time period in such a bad downtrend is not a good sign that it'll hold.
Good luck.