- Tesla is up ever so slightly during the trading session, about 35 basis points as I record this.
- But the reality is that at the end of the session on Wednesday, we will have an earnings report.
- So the fact that we are between a consolidation range right dead in the center between the support and the resistance barrier.
And with that being the case, the market is basically in a holding pattern. And I think that makes quite a bit of sense. $292.50 on the bottom is support, $365 on the top is resistance. The earnings estimate is for a gain and earnings of 0.397 cents, and the revenue is expected to come in at 22.28 billion. If the numbers meet or even beat those numbers, then I suspect that Tesla will go ripping towards the $365 level, mainly because of all of the nonsense that we had seen recently with this stock every time
TSLA Has Been Resilient
There was some type of spat between Elon Musk and Donald Trump. Furthermore, it’s probably worth noting that this selling pattern that we got when people started defacing Tesla vehicles and burning down dealerships, did a little bit of consolidation. We rallied, we broke above it, and now we’re in the same consolidation pattern only just above that previous one. So, it looks like we are stair-stepping our way higher. Because of this, I look at Tesla sell offs as buying opportunities. This of course is unless earnings come in extraordinarily poor. But if they come anywhere near the estimates or above, I’m looking to buy I would love to see Tesla pull back towards the 50 day EMA or possibly even the 200 day EMA. But we may not get that opportunity. Either way, I have no interest in shorting.
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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.
