Is Tesla stock revving up for further acceleration?
Independent analyst Alistair Strang discusses the significance of a chart breakout at the electric vehicle giant.
16th July 2024 07:39
by Alistair Strang from Trends and Targets
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To be honest, while some people worship Taylor Swift, a personal hero is Elon Musk. Why begs the question, does this make me a “musky” to use the Taylor Swift vernacular? The guy's space ships continue to fly with SpaceX. Then there’s Twitter (X), with Musk's account regularly posting updates of record usage numbers.
Finally, we’ve got Tesla Inc (NASDAQ:TSLA), once again reclaiming the place as largest electric vehicle supplier. Here in Argyll, we’ve gone from a few of the things to truly astounding numbers in the course of the last year. Apparently there’s even a local owners club where they meet up for coffee and to complain about the cost of chargers.
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As the inset on the chart below indicates, the market appears to have decided Tesla's share price should break above the downtrend since 2021. Our inclination is to take this quite seriously as visually it appears Tesla share price is once again revving up for some further acceleration.
Currently, above $271 looks like triggering movement to an initial $279 with our secondary, if bettered, at $294 and some possible hesitation. However, in the even the market makes it past such a level, our third level ambition of a future $358 becomes very viable.
We think this share price shall prove worth watching. While we’ve given $271 as potential trigger level, even above $263 should theoretically serve to get things moving.
Should things intend to go wrong, below $231 shall certainly justify panic as it risks promoting reversals down to $210 initially with our secondary, if broken, at an eventual hopeful bottom of $158.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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