- Tesla fell a bit during the Thursday session after initially gapping lower.
- That being said, the market has gone back and forth during the trading session on Thursday, so it’s not as if the selling picked up, it just seems like we were comfortable dropping a bit.
- Tesla has been somewhat noisy and sideways as of late, so it’s not a huge surprise to see that we are just simply sitting here and consolidating.
This being the case, the market is likely to continue to see a lot of noisy behavior, but I do also think that we are probably trying to build up enough momentum to break above the major resistance just above current trading.
When you look back at the longer-term charts, we have gotten awfully close to the resistance barrier that caused the last swing high, just below the $500 level. Ultimately, this is a market that I think continues to see a lot of back and forth, but I still believe that there are plenty of buyers out there willing to get involved.
Earnings Coming October 22
Keep in mind that the earnings call is on October 22, and the next couple of weeks could just be simply a time when Tesla goes back and forth, trying to figure out where it wants to lean indirection as far as the earnings call is concerned. The $400 level underneath is going to end up being psychologically important from what I see, and it’s also worth noting that the 50 Day EMA is hanging around that same region and rising. I have no interest in shorting Tesla, but I do recognize that a short-term pullback is potentially about to happen. I think it would be short-lived, and I do believe that traders will more likely than not continue to jump into stock as a lot of institutional funds hold this stock, and if you have a retirement account, you probably already own Tesla to one extent or the other.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
