One of the most highly anticipated events this week will be Tesla's ( TSLA) investor event on March 1. I won't be in attendance at the EV company's gigafactory in Texas, but I will be watching for clues on the stock's next move.
Let's check the status of the charts and indicators to see if we need to charge up.
In the daily Japanese candlestick chart of TSLA, below, I see a mixed picture. The shares have rallied strongly from a late December/early January low. TSLA saw increased trading volume in January with an upside price gap. The rally continued in February with more volume. There are some upper shadows on the candles in February but this may not be enough to precipitate a decline.
The On-Balance-Volume (OBV) line has been strong since late December but its pace of advancement has slowed in recent days. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.
In the weekly Japanese candlestick chart of TSLA, below, I see a mixed picture. The shares have rallied to the underside of the declining 40-week moving average line. An upper shadow can be seen at the underside of the 40-week line.
The weekly OBV line has moved straight up but now it may be making a high. The MACD oscillator has only crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of TSLA, below, I can see an upside price target in the $229 area. A trade at $192 could weaken the picture.
Bottom-line strategy: I have no special knowledge of what Musk and the leadership of TSLA have up their sleeve for this investor day but the charts are not roaring buys at this point in time. Trade carefully.
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Another increasing concern for equities is that we are likely to see an 'earnings recession'.
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