Chart Pattern Suggests a Significant Move in Tesla Soon

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

TSLA – An ascending channel has formed in the chart of Tesla (TSLA). When the stock moves out of this channel, a significant move is expected. Read more to learn how to take advantage of this trading opportunity.

An ascending channel has formed in the chart of Tesla Inc. (TSLA). When the stock moves out of this channel, a significant move is expected.

TSLA is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities.

With a first-mover advantage in the electric vehicles space, the company’s growth potential remains strong. It is seeing robust demand for both the Model 3 and Model Y. Plus, its Shanghai Gigafactory and aggressive expansion efforts bode well.

The company currently has a current ratio of 1.9, which means it has more than enough liquidity to handle short-term debt. In its most recently reported quarter, TSLA’s revenues grew 130.4%, though its earnings per share were negative. The company is expected to grow earnings 37% next year.

TSLA’s stock currently has a trailing P/E over 1,000 and a forward P/E of 169.49. The stock has shown positive near- and mid-term momentum. This has led to a Momentum Grade of B in our POWR Ratings system and is reflected in the chart below.

Take a look at the 1-year chart of TSLA below with my added notations:

 Chart of TSLA provided by TradingView

TSLA has formed an ascending channel over the past two months. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to channels, any (3) points can start the pattern, but a 4th test or more help to confirm it.

A long opportunity could be if the stock breaks the trend line resistance. A short trade opportunity could be if the stock breaks the trend line support.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


TSLA shares fell $0.40 (-0.06%) in premarket trading Tuesday. Year-to-date, TSLA has gained 0.79%, versus a 11.09% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TSLAGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

The Fallacy of “Peak Everything”

Connected to the inflation conversation is the theory of “Peak Everything”. This idea is making its rounds through the investing world with shock waves of trading activity. Let’s talk about what it is...What it really means for the future of the S&P 500 (SPY)...And why, we will end up on the right side of action. Read on below to find out more…

:  |  News, Ratings, and Charts

Could the Fed’s Rate Reversal Lead to More Volatility in the Stock Market?

Inflation has become a recurring theme in my comments due to a notable rise in inflation metrics and how they have affected the S&P 500 (SPY). The Fed has consistently spoken of inflation being transitory over the past couple of months, which has resulted in investors becoming less concerned over higher prices. But it appeared that the Fed reversed course as it is now, indicating it would raise rates ahead of schedule. This created more volatility in the markets leading to a tough day on Friday. But, if you look closer at their remarks, not everything is as it seems. I will expand on my point below. But first, let's recap the past week in the markets. Read on below…

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

:  |  News, Ratings, and Charts

3 Top Biotech Stocks To Bolster Your Portfolio

Illumina (ILMN), Jazz Pharmaceuticals (JAZZ), and Amgen (AMGN) are 3 of the top biotech stocks. The sector has been an underperformer over the last few years but could start outperforming given the aging population, low valuation, and growth potential.

:  |  News, Ratings, and Charts

2nd Half of 2021 Stock Market Outlook

The stock market (SPY) has continued on a bullish path to start 2021. Yet it is not quite the same glorious bull run we enjoyed from the lows of last year. This market has become more volatile and with less upside potential. However, there is still plenty of money to be made if you look in the right places. That is the very nature of the new presentation I put together. So read on for more info…

Read More Stories

More Tesla, Inc. (TSLA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TSLA News