Tesla (TSLA) is back in the news this morning with corporate news and not a tweet. Let's check and see what the charts and indicators are doing this morning.
In this daily bar chart of TSLA, below, we can see some "interesting" price and volume movement the past year. In a broad sense TSLA has traded sideways in a very wide high/low range. Prices have crossed above the below the 50-day and the 200-day moving averages many, many times. If we draw a horizontal line across $300, or roughly the mid-point of the action, the activity is evenly arranged I believe. If there was more activity in the upper half I would consider it distribution.
Now look closer at the volume data. Notice the heavier volume at the April low, the August turn, the October lows?
While the On-Balance-Volume (OBV) line declined from June to October, it has since risen suggesting that buyers are now more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) gave a cover shorts buy signal in early January and it is close to a bullish cross of the zero line.
In this weekly bar chart of TSLA, below, we can see that prices have been in a two-year consolidation pattern.
Prices are now above the rising 40-week moving average line and the weekly OBV line has been going up the past two years.
The weekly MACD oscillator narrowed recently but it has not crossed to a take profits sell signal. Interesting. A weekly close above $390 will be a major upside breakout.
In this very long-term Point and Figure chart of TSLA, below, we can see a downside price target of $148 being projected. A decline to $279.31 is probably needed to weaken this chart, but note that a trade at $394.32 would be a MAJOR upside breakout.
In this second Point and Figure chart of TSLA, below, we can see a downside price target of $283 (short of the $279.31 breakdown level noted above). We can also see that on this chart the major breakout point is $380.76.
Bottom line strategy: TSLA has absorbed many "body blows" and yet the charts and indicators show a bullish underlying theme, I believe. Despite the near-term news on TSLA it looks like the price action could surprise many of us with an upside move in the months ahead.