Tesla Chart Is Revving Its Engine
Tesla (TSLA) is one of those stocks that everyone loves to hate and hates to love. With outrageous valuations, rarely a day goes by without an “expert” on TV telling us once again why this stock should be avoided.
So how do we explain that the stock is right near all-time highs? Again? Is the entire investing market crazy – or are they being duped? Not if they’re making money on this name.
After February’s earnings report, the chart shows a nice trend of higher highs and higher lows (at the 50 ma). Even after last week’s drubbing, the buyers came back strong, and now a nice pattern has emerged. The gap from earnings is nearly filled, and a MACD buy signal is now in place and confirmed. Relative strength has a nice, steep slope.
In short, Tesla has better price action than the market, so money will continue to flow into the name. As a result, we should see new highs soon.
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Disclosure: None.