Tesla ( TSLA) is trading higher Thursday and testing both the round number of $900 and the late January zenith for the electric vehicle (EV) manufacturer.
In our last review of TSLA on Oct. 8 we wrote that traders should "Continue holding longs from earlier recommendations. Add to longs above $811 and use a stop at $710 now. Our price targets are $955 and then $1,200. EV cars can accelerate at a moment's notice." Let's see if this is the time to step on the accelerator.
In the daily bar chart of TSLA, below, we can see that the shares have continued higher from early October. Prices look like they are gaining speed on the upside as they move further away from the rising 50-day and 200-day moving averages. The big round number of $900 is an obvious target and only a minor barrier as prices did not trade there for long in late January.
The On-Balance-Volume (OBV) line has risen since early June telling us that buyers of TSLA have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator just turned higher for a fresh buy signal.
In this weekly Japanese candlestick chart of TSLA, below, we can see a great advance over the past three years. Prices are trading above the cresting 40-week moving average line.
The weekly OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of TSLA, below, we can see the $955 area price target.
In this weekly Point and Figure chart of TSLA, below, we used a five-box reversal filter and it suggests TSLA could reach $1,208. Not bad.
Bottom-line strategy: Traders who are long should continue to hold those positions. Raise stops to $805. Our first price target is $955 and then the round number of $1,000. $1,208 comes after $1,000.
