Tesla stock posts “golden cross”, but still neutral in the medium-term.

Tesla’s stock moved higher in recent sessions to touch a four-month high of 368.50. Meanwhile, the 50-day SMA crossed above the 200-day one marking a so-called “golden cross”, which is a bullish signal. That being said, the broader picture still appears to be sideways; a move above the August peaks of 387.00 is needed to change that.

Momentum oscillators concur that the short-term outlook is positive. The RSI is above 50 and moving higher, though may be nearing its overbought levels, while the MACD just crossed above its red trigger line – another bullish sign.

More advances could encounter immediate resistance near the 368.50 level, with an upside break opening the way for the 387.00 level; notice that the area around it encapsulates the stock’s all-time high, at 389.10. If the bulls pierce above that too, resistance may be found near round figures, for instance, 400.00.

On the downside, a pullback may stall first at 325.50, the low of October 23, with even steeper downside extensions aiming for the 315.00 level, where the 50- and 200-SMASMAs are also roughly located. Even lower, the inside swing high of October 17 at 280.00 could provide support.

In short, the near-term bias looks increasingly positive, but the medium-term picture remains neutral for now.

Tesla 07dec18 | EconAlerts



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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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