In the previous part of this series, we looked at Wall Street analysts’ latest recommendations on Tesla (TSLA). The majority of analysts are suggesting a “hold” on the company’s stock at the moment. Tesla stock posted its eight-month high of $373.73 on June 18, not far off from its all-time high of $389.61. In 2018 so far, Tesla stock has risen by about 13.2%. In comparison (XLY), General Motors (GM) and Ferrari (RACE) were trading with about 3.1% and 38.7% YTD (year-to-date) gains, respectively, while Ford (F) lost about 3.7% YTD. Now, let’s move on by looking at key technical indicators in Tesla stock.
Important technical indicators
On June 19, Tesla stock settled at $352.55. Its 200-day SMA (simple moving average) was much lower at $322.95, reflecting a positive bias in the price trend. No major support level lies above $308. The 14-day relative strength index was hovering at 65.9, easing off from overbought territory. However, it was still above the line of equilibrium. An RSI indicator above the line of equilibrium reflects underlying strength in momentum.
The MACD (moving average convergence divergence) indicator was at 11.3, while its signal line was much higher at 18.1. In the MACD indicator, a signal line above the actual MACD level reflects positive sentiment in the stock price trend.
An immediate resistance level in Tesla stock can be seen near $374 followed by its all-time high of $389.61. In the coming few sessions, uncertainties about Tesla’s Q2 Model 3 production and deliveries could keep its stock highly volatile. The company is likely to report its Q2 car deliveries and production figures in the first week of July.
Next, we’ll see how Musk justified building Tesla cars in a tent.