Tesla rallied Friday, rising above a key level of resistance and offering aggressive traders an entry into the stock.
Shares of Tesla, along with many other growth story stocks, at the opening bell for Monday's stock market action on the announcement of a trade deal between the U.S. and China. TSLA popped 4.7% to 298.26 during Friday's stock market, advancing above the 200-day moving average and offering investors an aggressive entry.
Investors could have used the May 2 high of 294.86 as an entry, according to MarketSurge chart analysis. However, there still is a lot of overhead resistance, with Tesla stock still down about 36% this year, even as it has surged as the general analyst consensus was positive coming out of the Q1 conference call.
TSLA stock on Friday faded significantly from its intraday high of 307.04 as the broader market gave up gains. For an exit strategy, investors could use Thursday's low of 279.41 as a stop.
Tesla Stock Rides Robotaxi Optimism
The overall analyst consensus has been generally positive since Tesla reported Q1 earnings on April 22. The stock has advanced around 30% since then. Investors and analysts await Tesla's launch of Model Y robotaxis in Austin, Texas, in June.
Q1 earnings tumbled 40%, badly missing views, with the company no longer predicting delivery growth in 2025. But investors and analysts cheered Elon Musk's pledge to refocus on Tesla and his optimism about robotaxis.
Chief Executive Elon Musk has said the company is on schedule for the rollout next month and that they are still debating what it will look like, but that that it will be "maybe 10-20" vehicles on Day One.
Shares have advanced 40% since hitting a recent low of 214.25 on April 7.
While Tesla stock is above the 200-day line, shares are still down 26% this year and have declined 39% from their 488.54 peak on Dec. 18.
Tesla stock has a 21-day average true range of 5.76%. The ATR metric is available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Tesla stock has a 70 Composite Rating out of a best-possible 99. Shares also have a 90 Relative Strength Rating and a 59 EPS Rating.
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