Senior Market Strategist on Tesla Stock Chart Support

Short-term and long-term TSLA averages to watch

Electric vehicles continue to grow in popularity. As the sector and adjacent markets entering the mainstream, it presents a treasure trove of opportunities for investors. Earlier this week, Schaeffer Investment Research’s senior market strategist, Matthew Timpane, was a featured presenter at the Benzinga Electric Vehicles conference. You can watch his entire presentation here.

Timpane’s slot has been so well received that we wanted to highlight more of the electric vehicle stocks he talked about. First, we had Lucid Group, Inc. (NASDAQ: LCID). Now Matthew is exploring EV heavyweights Tesla Inc. (NASDAQ: TSLA)

Matthew: Would it be a conference without looking at a chart from Tesla Inc (NASDAQ: TSLA)? The stock sitting here in this channel comes and goes, having found this base here. Interestingly, from a traders perspective, what we saw was this -20% level since the start of the year. Now it’s just a matter of tracing this channel up and down to find support to break through the 200 day level, but right now it’s kind of maintained that even amidst this volatility for the past few days.

TSLA EV Stock Chart

TSLA also has the rising 20-day moving average that it tends to hold in bullish rallies. The buy ratio to open 10 days per call that’s in the 89th percentile options is pretty cheap, they’re priced in the sixth percentile, and we have a massive spike level at the $700 level right here in this channel.

Then there’s that 200-day moving average, if for some reason we fall below that level. That’s when you would kind of just want to get away with it. You then have significant downside risk when it breaks those peak levels. We can easily see a range of $565 to $580 or even $500. But you know, analysts are still very mixed on Tesla because it’s outperforming, and it’s an expensive stock, but it’s expensive for a reason. So those are our thoughts here on Tesla.

Karen J. Nelson