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July 04, 2023
- $18.05 is Tesla's largest daily jump in 5 months.
- Upper Bollinger Band® currently at $284.9
Tesla has posted further gains as part of a 6 day trend that has already seen the stock gain $20.72. Yesterday's session pointed in the same direction — after ending Friday's session at $261.77, Tesla went up to $284.25 yesterday only to fall back and close at $279.82.
Elon Musk's EV company has appreciated 190.69% over the past six months.
Chart analysis indicates although Tesla is appreciating today after rising as high as $284.25, price action is now slowing and consolidating around $4.52 below the $284.34 resistance level. Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to momentum evaluation, the Relative Strength Index indicates Tesla is in an overbought condition. Asset volatility analysis shows that Bollinger Band® analysis indicates that current price action is approaching the upper band at $284.9, thereby suggesting that Tesla is becoming overvalued.
Notwithstanding Tesla's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Fundamental indicators – United States ISM Manufacturing PMI (Jun) came out at 46, while a consensus of analysts was expecting 47.2.
A look at other consumer discretionary stocks also showed bullish price action as Walt Disney gained 1.37%, as it traded at $90.5.
Tesla went up yesterday, yet these consumer discretionary stocks did not follow — McDonald's went down to $294.84, losing 1.2% after it closed at $298.41 yesterday. Nike retreats 1.14% yesterday to close at $110.37.
Upcoming fundamentals: United States FOMC Meeting Minutes will be released tomorrow at 18:00 UTC.
