You can check out my last post on TSLA where I correctly predicted that if we closed below the 100-month moving average at $189 at the end of May, we’d test the $175-$180 range and I recommended going long if that happens. I also provided some fundamental reasons, both long term and specifically for Q2, for why you want to be long TSLA.
Ever since Musk’s email on May 22nd suggesting that demand is potentially stronger than people have been thinking, the stock has wanted to move higher but has been held back by broader market weakness. On the first significant up day for the broader market since that email, TSLA surged higher yesterday and closed just off the daily high with the highest trading volume in 6 days. There’s every reason to expect another up day and an impending test of the psychologically important $200 level where we hit some resistance back on May 24th.
For investors, I recommend staying long here. I think the low is in before the next earnings report, barring a stock market crash. It won’t be a straight shot up to prior support at $250 because there will be overbought conditions that will have to be relieved on the way up, but only the most nimble of traders should be looking to profit off of those moves.
For traders in the immediate term, I would pay attention to the hourly chart, but also to candlestick closes and volume levels on the daily chart. I want to see a close above the 100-period moving average around $200 and two closes above 70 RSI on the hourly chart before I feel less concerned about an overbought correction on the short term charts. I would then look toward how the candlestick and volume level closes on the daily chart to decide what to expect for the next day. I want to see green, a close near the daily high, and good volume (essentially exactly what we saw yesterday, albeit a smaller percentage gain in all likelihood).
I’ll try to update my post around 2:45 CST today recommending a buy or hold for traders based on what I’m seeing on the hourly and daily charts.
Ever since Musk’s email on May 22nd suggesting that demand is potentially stronger than people have been thinking, the stock has wanted to move higher but has been held back by broader market weakness. On the first significant up day for the broader market since that email, TSLA surged higher yesterday and closed just off the daily high with the highest trading volume in 6 days. There’s every reason to expect another up day and an impending test of the psychologically important $200 level where we hit some resistance back on May 24th.
For investors, I recommend staying long here. I think the low is in before the next earnings report, barring a stock market crash. It won’t be a straight shot up to prior support at $250 because there will be overbought conditions that will have to be relieved on the way up, but only the most nimble of traders should be looking to profit off of those moves.
For traders in the immediate term, I would pay attention to the hourly chart, but also to candlestick closes and volume levels on the daily chart. I want to see a close above the 100-period moving average around $200 and two closes above 70 RSI on the hourly chart before I feel less concerned about an overbought correction on the short term charts. I would then look toward how the candlestick and volume level closes on the daily chart to decide what to expect for the next day. I want to see green, a close near the daily high, and good volume (essentially exactly what we saw yesterday, albeit a smaller percentage gain in all likelihood).
I’ll try to update my post around 2:45 CST today recommending a buy or hold for traders based on what I’m seeing on the hourly and daily charts.