{"id":5821,"date":"2024-07-05T12:02:14","date_gmt":"2024-07-05T12:02:14","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/07\/05\/tesla-stocks-shocking-comeback-what-you-need-to-know-before-july-23\/"},"modified":"2024-07-05T12:02:14","modified_gmt":"2024-07-05T12:02:14","slug":"tesla-stocks-shocking-comeback-what-you-need-to-know-before-july-23","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/07\/05\/tesla-stocks-shocking-comeback-what-you-need-to-know-before-july-23\/","title":{"rendered":"Tesla Stock\u2019s Shocking Comeback: What You Need to Know Before July 23"},"content":{"rendered":"
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Tesla (TSLA) shares staged a dramatic recovery ahead of the company\u2019s upcoming earnings report scheduled for July 23. Despite a slip in its deliveries compared to a year ago, the number of deliveries beat Wall Street\u2019s expectations. This \u201cbad news\u201d was \u201cgood news\u201d on the market sentiment front, and the price action proves it (at least for now).<\/p>\n

Tesla\u2019s Solid Market Position<\/h2>\n

Tesla is still the world\u2019s largest EV manufacturer and seller, though some analysts would argue that the company\u2019s grip on the market might be loosening. Plus, the interest rate environment isn\u2019t the most favorable for those looking to buy a new EV.<\/p>\n

However, Tesla has delivered more cars than it has produced. Dramatic inventory reduction has positioned the EV maker in a high-demand\/low-supply situation. Additionally, investors and car buyers expect interest rates to fall sometime toward the end of the year, which could boost demand for EVs and further fuel Tesla\u2019s rebound.<\/p>\n

What Does Tesla\u2019s Price Action Tell Us?<\/h2>\n

Last April, following its surprise earnings report, Tesla pulled off a huge breakaway gap. At the time, the Money Flow Index<\/a> (MFI) and Chaikin Money Flow<\/a> (CMF) showed signs of improving, but there were potential headwinds that could slow down or disrupt TSLA\u2019s upward trajectory.<\/span><\/p>\n

The outcome:<\/strong> Tesla\u2019s stock slowed, and prices consolidated, forming a base as investors digested news about the company\u2019s inventory situation and other factors.<\/p>\n

What you see in the chart below<\/a> is what happened next.\u00a0<\/span><\/p>\n<\/p>\n

CHART 1. DAILY CHART OF TESLA. Since April 23, TSLA stock moved sideways and broke out to the upside.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

First, look at the congestion zone, which formed a rectangle pattern<\/a> highlighted in red. This occurred at the anticipated resistance level (blue dotted line). Also, notice how the CMF levels dropped as buying pressure gave way to selling. <\/span>However, during that lengthy period of consolidation, the CMF and MFI began rising against TSLA\u2019s sideways price action, signaling a potential breakout toward the upside.<\/p>\n

TSLA\u2019s price blasted through the second resistance level, as bullish market sentiment catapulted the stock 32% above its breakout level (the top of the rectangle formation).<\/p>\n

Is TSLA Stock a Buy?<\/h2>\n

With explosive moves such as this one, it\u2019s important to remember that, until the fundamentals validate the price, it\u2019s all FOMO, but in the near term.<\/p>\n

Tesla closed (with gaps) above the upper Bollinger Band<\/a> three times. Even if this signals the beginning of an uptrend, prices tend to revert to the middle band before continuing in a given direction, as the bands, according to Bollinger himself, contain 88% to 89% of all price action.<\/span><\/p>\n

So, if or when TSLA\u2019s stock price pulls back, here are the key levels to watch:<\/p>\n

Former resistance near $205 could act as the first level of support.
\nThe top range of the rectangle formation between $188 and $189.
\nThe middle Bollinger Band, which can also be viewed as potential support, may likely coincide with one of these levels once Tesla\u2019s price takes a breather.
\nThe Volume-by-Price<\/a> indicator, highlighting the range of elevated interest and trading activity, also aligns with the mentioned support levels.<\/span><\/p>\n

Final Thoughts<\/h2>\n

Tesla\u2019s sentiment-driven surge might indicate a significant shift in its technical and fundamental situation. However, it\u2019s prudent to wait for confirmation. Technically, this confirmation will be evident in the subsequent price action. Fundamentally, it will be reflected in the reported sales and earnings over the next few quarters, which could take longer to materialize. Additionally, technical and fundamental outcomes are subject to changes in the interest-rate environment.<\/p>\n<\/p>\n

Disclaimer:<\/em><\/strong> This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Tesla (TSLA) shares staged a dramatic recovery ahead of the company\u2019s upcoming earnings report scheduled for July 23. Despite a slip in its deliveries compared to a year ago, the number of deliveries beat Wall Street\u2019s expectations. This \u201cbad news\u201d was \u201cgood news\u201d on the market sentiment front, and the price action proves it (at […]<\/p>\n","protected":false},"author":0,"featured_media":5822,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5821"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5822"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}