Tesla (NASDAQ:TSLA) hit a new split-adjusted all-time high on Friday as the stock closed the week above the $900.00 price level. Lucid bulls may be wondering about the growing pains Lucid will experience as the company tries to scale and build up its capacity to rival that of Tesla’s. Considering Lucid has yet to announce a delivery date, it could be years before Lucid can realistically call Tesla a rival. Tesla shares did a sharp about-face on Thursday, having opened lower after the earnings release on Wednesday. TSLA reported earnings after the close, and they were a strong set of numbers, but the stock slid lower as it had already apparently priced in much of the upside to earnings. Thursday saw this bearish trend overpowered as the stock opened and quickly rallied over $30, consolidating those gains just under all-time highs.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The strong move is now running out of power and is putting the uptrend into question. While Tesla remains well above the 9 and 21 day moving averages, it is heavily overbought on the Relative Sterngth Index (RSI). The last time it was this overbought was back in April when it reached an all-time high and then fell steadily lower. At least back then the earnings report missed estimates, not the case this time around. However, overbought is overbought, and momentum is definitely slowing, so caution is needed. If long, use a trailing stop to at least guarantee some profits. We are turning negative despite the chart being bullish. We do not think there was enough in the earnings release to push the stock higher. $780 to $800 is a strong support zone and where the recent rally took off from.

For those more bullish, there is a gap to fill at $840, so this can be used as a support, and the 9-day moving average will also have tracked to this level.

TESLA

Oct 25 2021