

Please try another search
It has been a month since I last provided an update on Tesla's (NASDAQ:TSLA) share price. Back then, it was trading at around $575. Now, it is trading at $610, a 6% gain in a month. That is not much to write home about, nor much that helps me constructively assess the next most likely move. Besides, while the NASDAQ Composite and the Nasdaq 100 are close to their all-time highs, albeit having been range-bound since February this year, Tesla is still down 33% from its January all-time high. Thus, it is underperforming these two major indexes, not to mention in comparison to the S&P 500 and Dow Jones Industrial Average, which have set fresh all-time highs almost daily. Thus, all Tesla has done so far is gyrate around its 200-day simple moving average (SMA) over the last month. See Figure 1 below.
If it can stay above the 200-day SMA, all things are good. But the fact it has been struggling and not seen a “one-touch-and-go” setup is a sign of concern.
Figure 1. TSLA daily candlestick charts with EWP Count and Technical Indicators
Besides, Tesla is below its declining 50-day SMA. And it is evident from Figure 1 that “good times are ahead” when it trades above its rising 50-day SMA, and “bad times are ahead” when it trades below it.
Moreover, since my last update, the EWP suggests the rally is corrective and should fail due to the somewhat overlapping price action since my last update. A daily close below the 200-day SMA and $550 horizontal support can then help usher in the preferred decline to the ideal target zone, as shown in Figure 1.
But the bulls need to crack $625 resistance and rally Tesla back above the 50-day SMA to suggest the alternate EWP count is operable, i.e., blue primary wave-IV completed with a shorter than usual c-wave. Thus, we have explicit “if/then” scenarios ready to deploy when triggered, and we are prepared for either direction the price decides to take.
Reports Q1 2022 earnings Wednesday, May 18, before the open Revenue Expectation: $24.41B EPS Expectation: $3.06 For tools, data, and content to help you make better investing...
It's difficult to remember an acquisition that has received more attention than the purchase of Twitter (NYSE:TWTR) by Tesla's Chief Executive Officer Elon Musk. There may not be...
This article was written exclusively for Investing.comArcher-Daniels-Midland shares reached an all-time high in April Broad market correction weighs Earnings have been...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.