Tesla Will Confirm A Golden Cross On Friday, June 23. The Stock Is Below Its Quarterly Risky Level At $271.66

Tesla

TSLA
Inc (TSLA) had a bear market decline of 75.4% from the high of $414.49 set on November 4, 2012, to the low of $101.81 set on January 6, 2023. The date of the low was a positive key reversal day. This buy signal was followed by a gain of 172% to a high of $276,99 set on June 21, 2023.

Additional upside is highly likely if this week ends with a golden cross on its daily chart. The 50-day simple moving average is $194.87 with the 200-day simple moving average at $195.67. A bullish cross-over is highly likely on Friday, June 23. The weekly chart for Tesla has been positive since the week of May 19, 2023.

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Tesla has an elevated p/e ratio at 80.72% and does not offer a dividend, according to Macrotrends. The stock has beaten earnings-per-share estimates in nine consecutive quarters.

The Daily Chart for Tesla

Courtesy of Refinitiv XENITH

Tesla nearly had a golden cross on September 30, 2022, but that did not happen as the 50-day simple moving average stayed below the 200-day simple moving average. This failed signal prompted the 67.5% decline from the September 21, 2022 high of $313.80 to the low of $101.81 set on January 6, 2023.

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Note that January 6, 2023 was a key reversal buy signal. This happened when this day’s close was above the January 5 high after setting that 2023 low. Tesla will soon have a golden cross when the 50-day SMA moves above the 200-day SMA.

The horizontal lines from low to high are the monthly value level at $113.41, the annual pivot at $192.93, the quarterly risky level at $271.66, and the semiannual risky level at $362.34..

The Weekly Chart for Tesla

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Courtesy of Refinitiv XENITH

The weekly chart for Tesla has been positive since the week of May 19, 2023. The stock is above its five-week modified moving average at $221.23 and is well above its 200-week simple moving average or ‘reversion to the mean’ at $186.28. The 12x3x3 weekly slow stochastic reading is rising at 79.79. The stochastic readings scale from 00.00 to 100.00 with a number above 80.00 overbought and below 20.00 oversold. This reading will likely be overbought at the beginning of next week.

Trading Strategy: Buy Tesla on weakness to its annual pivot at $192.93. Reduce holdings on strength to its quarterly risky level at $271.66.