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Fed Lift
Shares in Tesla are trading at fresh highs for the year this week after breaking out yesterday. Pre-market, the stock is sitting a few points higher suggesting further gains to come as we head through the middle of the week. The stock has seen a strong boost in recent weeks as market expectations for the FOMC have shifted away from expecting a further Fed rate hike and towards a pause.
China Boost
Tesla stock has also been lifted by news of Elon Musk’s recent trip to China, the first visit I three years, which has been seen as signalling a strengthening of relations between the company and the state. Additionally, a court ruled this week that Elon Musk did not force Tesla into overpaying for SolarCity in 2016, putting end to years of legal wrangling over the $2.6 billion deal.
Bullish View
Near-term, Tesla stock looks set to advance further. Investor sentiment has turned positive on the back of the recent investor event which saw Musk outlining plans for the release of the Cybertruck along with expansion in other areas. With stocks generally rallying against a reduced Fed rate path, Tesla should remain supported for now.
Technical Views
Tesla
The rally in Tesla stock off the 170.22 lows has seen the market breaking through several key resistance areas. The stock is now trading above the 207.71 level and the longer-term bearish trend line. With momentum studies bullish, while the stock holds above here the focus is on a further push higher towards the 255.61 level next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.