Earnings Play: Tesla

Today, after market, Tesla is expected to release 2Q earnings.

Tech (1)

Today, after market, Tesla (TSLA) is expected to report second quarter LPS of $0.02 compared to an LPS of $1.12 a year ago on revenue of approximately $5.4B vs. $6.3B last year. The company designs and manufactures electric-vehicles, and on July 21st, Bloomberg reported that all of the company's China-made Model 3s are now eligible for purchase tax exemptions. In other news, Tesla's current analyst consensus rating is 8 buys, 13 holds and 15 sells, according to Bloomberg.

Technically speaking, on a daily chart, Tesla's stock price has been on a relentless uptrend since March 19th, gaining just over 340.0% to date supported by its 20-day moving average. In the short-term price has been holding above a rising trend line since the beginning of July. As long as the price action can remain above the trend line we may see a rise towards $1675 before attempting a test of the all-time high at $1795. However, if the stock dips below trend line support, there is a chance that sellers may step in which could drive the price back down to $1430. If Tesla can't find support at $1430 look towards $1265 as the next key support level. Tesla has an expected move of 13% in either direction after earnings are released based on the front-month options volatility.        

Source: GAIN Capital, TradingView

Looking at a 30 minute chart, we can get a better view of the bullish trend line that Tesla's stock has been holding.  

Source: GAIN Capital, TradingView

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