Chart Pattern Suggests a Significant Move in Tesla Soon

An ascending channel has formed in the chart of Tesla (TSLA). When the stock moves out of this channel, a significant move is expected. Read more to learn how to take advantage of this trading opportunity.
Chart Pattern Suggests a Significant Move in Tesla Soon
Image credit: shutterstock.com via StockNews

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.
3 min read
This story originally appeared on StockNews
An ascending channel has formed in the chart of Tesla (TSLA). When the stock moves out of this channel, a significant move is expected. Read more to learn how to take advantage of this trading opportunity.

An ascending channel has formed in the chart of Tesla Inc. (TSLA). When the stock moves out of this channel, a significant move is expected.

TSLA is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities.

With a first-mover advantage in the electric vehicles space, the company’s growth potential remains strong. It is seeing robust demand for both the Model 3 and Model Y. Plus, its Shanghai Gigafactory and aggressive expansion efforts bode well.

The company currently has a current ratio of 1.9, which means it has more than enough liquidity to handle short-term debt. In its most recently reported quarter, TSLA’s revenues grew 130.4%, though its earnings per share were negative. The company is expected to grow earnings 37% next year.

TSLA’s stock currently has a trailing P/E over 1,000 and a forward P/E of 169.49. The stock has shown positive near- and mid-term momentum. This has led to a Momentum Grade of B in our POWR Ratings system and is reflected in the chart below.

Take a look at the 1-year chart of TSLA below with my added notations:

 Chart of TSLA provided by TradingView

TSLA has formed an ascending channel over the past two months. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to channels, any (3) points can start the pattern, but a 4th test or more help to confirm it.

A long opportunity could be if the stock breaks the trend line resistance. A short trade opportunity could be if the stock breaks the trend line support.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


TSLA shares fell $0.40 (-0.06%) in premarket trading Tuesday. Year-to-date, TSLA has gained 0.79%, versus a 11.09% rise in the benchmark S&P 500 index during the same period.



About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.

More...

The post Chart Pattern Suggests a Significant Move in Tesla Soon appeared first on StockNews.com
More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Make sure you’re covered for physical injuries or property damage at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur