If you are into binge watching, it is hard to beat the drama TSLA offers. What other stock has a CEO that puts out a poll (on the social media platform they just bought) and asks if they should step down? We were glad to reel in some great gains as the stock plunged (check the article here) and it looks like it may start looking for some footing.
It is tough to deny that Tesla is dominating the EV space. And that space is expanding like the big bang. Someone is always coming after the fastest gunslinger but this recent drop in TSLA may have pushed it down a little farther than it should and it is a great chance for it to refill.
Take a look at the chart and then we’ll look at the pros and cons and what to watch for:
In terms of a potential refill rally the pros include that it has a lot of room to the upside. With the MACD in oversold territory it is set to build some nice upside momentum. An additional pro is that there are some clear previous highs that make easy to identify price targets. Recent peaks at 195 and 225 offer convenient strikes for call options.
On the con side there just isn’t a bottom yet. We would really like to see a move above the 10 day moving average to give an initial confirmation of the reversal. We would also want to see the MACD cross over to the upside as well.
This is definitely a stock to keep an eye on.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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