Tesla has been in the news a lot over the last few years, and it’s climbed one hell of a mountain since mid-November when it was just $410 per share compared to today’s whopping $852. That’s over 100% gains in less than THREE MONTHS!
What Happened to Tesla?
Tesla shot up so fast, but since January 8th 2021, the stock price has moved mostly sideways in comparison. There hasn’t been any noticeable patterns forming yet, so its probably safe to assume investors are settling into the current price and most of the short term players have taken their profits and ushered in some new blood.
Tesla’s Current Stock Pattern
As of today, there appears to be a resistance point set around $892. The stock hasn’t been able to finish a day passed this point. Support came in around $791 on January 29th. Today’s current price of $852 hovers just around the middle of the support and resistance lines.
Should I Buy Tesla Stock?
At Stock Tavern, we would likely hold Tesla stock if it is already owned, but not action additional buying of the stock at the time. The stock is nearing an intersect of its trendline and the resistance line, which can bring forth unpredictable behavior. If it break downward through the trendline, that is typically a sell signal and should be watched carefully. However, if the price is able to break through the resistance line before that happens, this would trigger a bullish movement and could be a great time to buy.
OK, So What Else Do I Need To Know?
Watch out for a saucer pattern to form in the coming weeks. This could point to potential upside, especially if a breakout occurs on high volume.
Be Cautious with this stock. It has had quite the ride over the past three months and market sentiment is mixed as of late. It is a risky play, but also a great company. Invest wisely!
As always, Stock Tavern is not suggesting you buy or sell this stock, and this analysis should not be taken as financial advice. Always do your research and make your own decisions, we all have different risk profiles and therefore no trade is right for everyone.
Disclosure: Stock Tavern is currently long on TSLA.