Three reasons Tesla stock rose on Monday
- Tesla shares jumped 2% on Monday to return above $ 700.
- Less enthusiastic Tesla action on Tuesday with limited movement.
- TSLA stock is still on the verge of climbing and testing $ 780.
Update: Tesla traded in a narrow range on Tuesday, which is not surprising given that the market broadly did the same ahead of the US CPI figure on Wednesday. Now that we have eliminated the CPI and it hasn’t led to anything too dramatic, Tesla is still on the verge of going up. Breaking $ 715 is the catalyst for a test at $ 780 as the volume profile leads the way.
While the overall market was fairly calm on Monday, with Apple seeing virtually no change (see here), Tesla managed to outperform sharply, rising 2% on the day. Soaring isn’t typically a word associated with 2% movement anymore, given how memes storage space has changed our perception of movement this year, but 2% is remarkable when the overall market was flat for lower that day. A strong outperformance therefore for the Tesla share. The day started off positively with the first news of a Jefferies upgrade that helped sentiment in the pre-market on Monday and this continued into the main session. Tesla shares briefly exceeded our target of $ 715 before pulling back a bit at the close, with shares closing at $ 713.76 for a gain of 2.1%.
Monday’s move was well put together by, firstly, the $ 697 support, which held the recent uptrend in place. Second, Jefferies improved TSLA, and third, bullish technical indicators became clear. Read on!
Tesla key statistics
|Market capitalization||$ 702 billion|
|Prize / earnings||358|
|Price / Sales||23|
|Price / Reservation||29|
|Enterprise value||$ 753 billion|
|The net margin||
|Wall Street average rating and target price||Hold, $ 711|
Tesla Stock Forecasts
Now that $ 697 is held, this further confirms the uptrend. Breaking down and holding above $ 715 is the next test and goal. Above here, the volume profile bars show that the volume is drying up a lot, meaning the upward movement should face less resistance and our mid-term target of $ 780 will come closer to a. little more. Once above $ 740 volume is completely lacking, meaning any break should be easy to maintain. The key to the uptrend remains $ 697 – if broken, all bets are void. This is now the 9-day moving average, which further adds to the importance of the level.
We can see from the chart below how the momentum indicators, Relative Strength Index (RSI) and Commodity Channel Index (CCI), are tracking the upward movement as confirmation. FXStreet maintains $ 780 as an average target. This is also the annual VWAP (Average Weighted Voume Price).
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