Can Tesla Keep Driving Higher?
Fiona Cincotta April 6, 2020 1:17 PM
Tesla’s share price jumped 5.6% on Friday and is set t open an additional 4.5% higher on the open today.
Tesla’s share price jumped 5.6% on Friday and is set to open an additional 4.5% higher on the open today.
Tesla reported that it delivered more vehicles in Q1 than expected, despite the coronavirus setbacks. Tesla delivered 88,400 cars in Q1 2020, beating Wall Street’s expectations of 79,908 units. Whilst Q1 saw a jump from Q1 2019 when jut 63,000 cars were delivered, the number was short of Q4 2019 when 112,00 when cars were delivered.
Today the mood music in the market is more upbeat after some signs over the weekend that the spread of coronavirus could be slowing, and containment measures might be working. Italy and Spain have both seen covid-19 cases fatalities fall. Germany and France are also seeing a flattening of the curve and the US has seen rates slow over the weekend, although its unclear how sustained that trend will be.
After the extended period in lock down owing to a natural disaster, there is a good chance that consumers will come out the other side with changed habits and visions. A more environmentally friendly approach could be one such adjustment. This would be favourable for Electric Vehicles such as Tesla.
Levels to watch
Tesla traded 5.6% higher on Friday and is set to extend gains by 4.6% on the open today, attempting to recoup 6.6% losses from across the previous week. The stock trades above its 200 sma on the daily chart. It looks set to test its 100sma, a move above here could see more bulls jump in.
Immediate resistance can be seen at 515.50 (yesterday’s high) prior to 528.50 (100 sma) and 560 (high 26th March)
On the flipside, support can be seen at 446 (low 2nd April) prior to 387 (200 sma) and 350.50 (low 17th March).
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.