Ford Motor ( F) announced a deal with Tesla ( TSLA) to gain access to over 12,000 of its rival's charging stations starting in 2024. The share price of both firms were higher Friday, but I want to focus on Tesla.
Let's plug in a few charts.
In this daily bar chart of TSLA, below, I can see that prices have rallied to the underside of the declining 200-day moving average line. TSLA trades above the rising 50-day line.
The On-Balance-Volume (OBV) line declined in April but has been rising in May. The Moving Average Convergence Divergence (MACD) oscillator is crossing above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of TSLA, below, I can imagine this week's price strength and "see" that prices are testing the declining 40-week moving average line.
The weekly OBV line turned higher from early January. The MACD oscillator has been improving but is still below the zero line.
In this daily Point and Figure chart of TSLA, below, I can see an upside price target in the $245 area.
Bottom line strategy: I saw the conditions for a rally in TSLA on May 10 and that continues to play out. A close above the 200-day moving average line in the days ahead should recharge the rally. The $245 area is my price target for now.
Here's how I'd play the SPDR S&P Biotech exchange-traded fund.
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