Chart Of The Day: Tesla Soars In Pre-Market Trading; Technicals Point Higher Too
Investing.com | Jan 03, 2022 22:37
Though most conventional automakers had a disappointingly slower 2021 due to chip shortages hampering production and deliveries, along with rising inflation weighing on sales, Tesla (NASDAQ:TSLA)—always the contrarian—took the fast lane.
After the Austin, Texas-based electric vehicle maker announced yesterday it had delivered 308,600 cars in the fourth quarter, boosting annual sales to over 936,000 vehicles, for an increase of 87% from the previous year, the stock soared in pre-market trading on Monday. Shares of TSLA are currently up more than 7%, trading at $1,134.68 at time of writing. That's a gain of almost $80 just this morning.
The astonishing performance makes Tesla's fundamentals breathtaking in a positive way, but the stock's short-term technicals look more challenging.
Shares have been trading within a falling channel since the Nov. 4 all-time high. Can bulls overcome the bearish pattern where supply has been dominating the trend? The broader picture could provide an answer.
This more extensive view makes it clear the daily falling channel is just in the short term. Over the longer term the trend is obviously rising. It's plainly defined in the rising channel since the March 2020 bottom, supported by the 50 WMA.
Also, now that investors have bid up the earlier $1,126.50 price, traders have broken through the topside of the falling channel, suggesting the short-term price will now return to the long-term uptrend.
h2 Trading Strategies/h2Conservative traders should wait for the price to confirm the breakout, by retesting the top of the broken, short-term falling channel.
Moderate traders would wait for a buying dip.
Aggressive traders could enter a long position now, according to a trading plan that addresses their timing, budget, and temperament. Here is an example:
Trade Sample
- Entry: $1,125
- Stop-Loss: $1,100
- Risk: $25
- Target: $1,225
- Reward: $100
- Risk-Reward Ratio: 1:4
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.