Shares in Tesla (NASDAQ:TSLA) have held near the key psychological area of $1,000 since Monday, Apr. 11, as the company’s earnings report approaches on Apr. 20, after hours. The consensus EPS for Q1 is $1.64 compared to Q1 2021’s 39c. The six estimates form a broad range from $1.06 to $1.95.
Despite recent focus on Elon Musk acquiring a significant stake in Twitter (NYSE:TWTR), Tesla’s fundamentals themselves seem to remain strong. Expansion of production in Europe and Asia plus the generally very good outlook for electric vehicles over the next few years are strongly positive factors. As such a big name and popular instrument, Tesla seems to be among the shares best placed to withstand the latest weakening of sentiment in stock markets.
The attempt to move clearly below $980 seems to have been rejected for now, with the presence of the 100 SMA increasing this area’s importance as a support. Now that the price has moved out of overbought and retraced from the peaks on 4 and 5 April, traditional swing traders might be more inclined to favour buying in. However, volatility will probably increase significantly around earnings on Wednesday, Apr. 20, with intraday movements greater than ATR’s $50 looking likely.