The 'Magnificent Seven" - are a collection of seven companies that have become household names during the pandemic, Jim Cramer said, and as long as we're waiting on a vaccine, these stocks will continue to rise.
There's Tesla (TSLA) , a perennial cult favorite. Cramer told viewers of Mad Money Monday evening that shareholders of Tesla are convinced the company will grow into its sky-high valuation and quarterly earnings will not dissuade them.
Let's check out the charts of TSLA ahead of earnings that are expected after the close on Wednesday.
In this daily bar chart of TSLA, below, we can see that prices have been stalled since early September. Prices are pointed down on a short-term basis and could test the rising 50-day moving average line. Trading volume has been declining the past two months.
The On-Balance-Volume (OBV) line has been in an uptrend the past 12 months but now looks like it has made a small high.
The Moving Average Convergence Divergence (MACD) oscillator peaked in early September and has been declining towards the zero line.