Barclays (BCS) cut their fundamental rating on Tesla (TSLA) to "equal-weight" ahead of the EV maker's earnings due on July 19. Meanwhile, CEO Musk is meeting with Indian Prime Minister Narendra Modi.
Let's check and see what the rest of the investment community thinks of Tesla stock. In other words, let's check out the charts.
In the daily bar chart of TSLA, below, I can see that the shares have continued higher since the end of April. The stock trades above the rising 50-day moving average line and above the bottoming 200-day line. The 50-day line is close to crossing above the 200-day line for what is commonly called a golden cross. This would be a belated buy signal.
The trading volume has been strong since the middle of December and signals strong investor interest and probably heavy short-covering. The On-Balance-Volume (OBV) line has moved up strongly from late December and confirms the price strength we have seen to date. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of TSLA, below, I still see a very bullish picture. Prices broke a major downtrend that was in force and have launched a strong uptrend. The shares trade above the bottoming 40-week moving average line.
The weekly trading volume has been more active since December and tells me that investors have returned to TSLA. The OBV line has moved up this year to confirm the price gains.
The trend-following MACD oscillator crossed above the zero line this month for an outright buy signal. The candles in recent weeks have been strong and do not show us upper shadows.
In this daily Point and Figure chart of TSLA, below, I can see that the shares have reached and exceeded an upside price target in the $245 area.
In this second daily Point and Figure chart of TSLA, below, I used a five-box reversal filter, which projects an upside price target in the $297 area.
In this weekly Point and Figure chart of TSLA, below, I can see a price target in the $521 area.
Bottom-line strategy: The marketplace is made up of many opinions. Some bullish and some bearish. The key for market observers is to judge these opinions in the light of the market action. If the price action decides to ignore the shifting opinions it is the right path to follow. For now the path of least resistance on TSLA is higher. My nearest price target remains $300.
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