Tesla Weekly analysis, Good time to buy ?Hello everyone, as we all know the market action discounts everything :)
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The Tesla stock is at 709.67 and last week was able to reach the first resistance line at 714.08 but couldn't close above it, The market price seems to be moving in a Triangle pattern and there is a big possibility for a breakout in the next period of time.
Both the short-term and long-term trends are positive. This is a very positive sign.
The major trend for Tesla seems to be Bullish and am seeing 2 different scenarios for the market movement in the next few weeks :
Scenario 1 :
The stock price will be able to breakout from the first resistance line at 714.08 and will be headed for the second resistance line at 740.95. if the Bulls were able to keep control of the trend then we could be seeing the TSLA stock reaching the 800 to 900 range.
Scenario 2 :
The stock price will drop and hit the support line 643.79 then a battle will happen between the bulls and the bears with the outcome most likely to be for the bulls and the price will bounce back up and start testing around the resistance lines again.
But if the bears were able to take control then we could be seeing the stock dropping to the range of the second support line at 600.37.
Different indicators showing that the market is bullish tho as we see :
1) The market price is trending above the 5 10 20 50 100 and 200 MA and EMA. (Bullish sign)
2) The MACD is at 13.19 showing that the market is in a Bullish state with a positive crossover happening between the MACD line and the Signal line.
3) Stoch is in a Bullish state with a positive crossover between %K and %D, %K reached the overbought zone.
Support & Resistance points :
support Resistance
1) 643.79 1) 714.08
2) 600.37 2) 740.95
3) 573.50 3) 784.37
Fundamental point of view :
TSLA has a Profit Margin of 5.14%. This is better than the industry average of 2.51%.
The Earnings Per Share has grown by an impressive 172.10% over the past year.
Piper Sandler keeps it pretty simple in reiterating an Overweight rating on Tesla (NASDAQ:TSLA) and calling it one of its favorites.
Piper points out that the Q2 margin beat was not "fishy" and thinks automotive gross margin for TSLA could top the mid-20s next year.
Tesla is higher in morning trading and is looking to record its fourth straight session of gains. The strong push today is being tied to good reads from Chinese automakers Nio, XPeng and Li Auto on demand. The round of reports on deliveries for July is more than offsetting concerns over Beijing regulation moves.
Looking ahead, Shanghai-based analyst Gao Shen thinks China EV start-ups XPeng and Li Auto pushing over the 10K monthly unit mark is a meaningful threshold to watch because after exceeding that level - a carmaker will be "viewed as a powerful player" in the automotive industry.
Last week, Tesla announced that the price of the standard range Model 3 after subsidy would be reduced about 6% or 15,000 yuan ($2,320) to 235,900 yuan.
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view , not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
