Tesla’s share price has been range bound between the $65.00 and $750.00 levels recently following the recent stock market plunge, which saw Tesla’s share price tanking after hitting $1,230.
Additionally, tech stocks have been recovering this week as the Nasdaq surges higher alongside the S&P500. Cryptos have also been rallying. Generally speaking, all these components are good from Tesla.
The recent cancelling of the Twitter deal for Elon Musk has not hurt the share price that much. It could even help it as the market probably wants Musk to focus on Tesla rather than Twitter.
I would suggest keeping a close eye on the triangle over the coming weeks and months as the pattern is suggesting a major move of some 100 or even 200 points plus move is coming.
In its earnings report on Wednesday, Tesla revealed that it has sold approximately 75% of its Bitcoin purchases and took an impairment. The news hit the number one cryptocurrency hard.
In terms of earnings for the large electric car maker in America the EPS at $2.27 beat the estimate of $1.80 while revenue was at $16.934 billion compared to $17.2 billion expected. A year ago, revenues were at $11.958 billion.
I think the EPS beat is enough to keep bullish momentum going. I think Tesla’s share price could have the momentum going forward to continue higher. Much will depend on market sentiment.
Tesla Short-term Technical Analysis
According to the four-hour time frame Tesla is trapped inside a large symmetrical triangle pattern. The pattern is neutral so we don’t know for sure which way the break will come.
Looking at the size of the triangle I would suggest a $100.00 price move is likely, so an explosive move is surely brewing for the car company.
Tesla Medium-term Technical Analysis
According to the daily time frame Tesla’s stock price is trapped inside a massive triangle. These types of patterns are fairly neutral; however, it does suggest a huge price move is coming.
The larger picture still shows a huge, inverted head and shoulders pattern that has yet to be invalidated. This is providing a glimmer of hope for medium-term bulls that Tesla can get back to $1,000.