$TSLA has been on fire .. . the stock, not the cars :). (June 30, 2020)
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I want to talk about Tesla (NASDAQ: TSLA ) and this is why: This stock has been on fire for a while here; sorry, I’m not talking about the cars but the stock. While I was actually doing my note this morning one of the things that I was looking at was Tesla (NASDAQ: TSLA ); members have asked for a measured move, what do I think the next price target should be, which I will get to in just a sec.
Then while I was doing that they reported that their deliveries, and pardon me, I forget if it is quarterly deliveries or monthly deliveries. I don’t know I don’t keep track of that stuff I look at charts it was like 92,000. That was more than expected and so this is what the stock had done; it had already been up premarket, you will hear the opening bell ring any second now, the stock had already been up premarket, it was on a tear. It came back, I picked up a little more stock premarket and then they reported these numbers and the stock just continued to move higher.
You can see it has actually been a nice premarket move higher. But then suddenly the market opens up and it looks like there is this massive gap; there is. but if we just kind of track and see how this thing trades, frankly, I think we will be able to see something here. I am very comfortable holding this stock and that has typically not been my stance with Tesla (NASDAQ: TSLA ). I have held the stock for a while but it hasn’t been without, shall we say, it hasn’t been without hesitancy and skepticism; we’ll put it that way but you can’t argue with charts.
Here I am looking at this and I see, on a 1-minute chart, you will see the stock gapped way up. If this was going to be a gap and crap, if this was going to be a trade that the stock is up 8 or 9 percent, typically that is one that you are going to sell into. If this was going to be that, it would have already traded off but it hasn’t, and this is my contention; my contention is that any sell-offs, and we could get more of a retracement here, my contention is not that they are not going to be that hard. I think that momentum traders still want to get in on this stock, that’s what I think.
What I would suggest doing is, on any kind of pullback (we’ll get back to the daily chart now), on any kind of pullback I think you want to be buying some of this stock. I think that’s the move for you to make. What I had done was, on a measured move basis, I just simply looked at this level here, taking it down to there, it’s about 60 percent, about 500-600 points. So then if I move this up 60 percent and about 500 or 600 points I get 1551.00, 1560.00, and I always scale it down and it’s about 1500.00. So that is my price target for Tesla (NASDAQ: TSLA ) and I will just say this, if this pulls back, certainly if it falls to the 8-day moving average, I think that is a trade that you can make. This is a pure momentum stock and buyers are still out there.
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