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Tesla Rally Continues
Shares in Tesla are trading higher pre-market as the stock’s bull run continues. The recovery off the April lows has seen Tesla shares advancing more than 70%, now up over 155% on the year so far. Shifting Fed expectations have been a huge driver behind the aggressive move higher in tech stocks recently. With the Fed now widely expected to pause rates this month, in line with cooling inflation, stock traders have been given a green light once again.
Model Y Price Raised
Tesla is also benefiting from news that Elon Musk has raised the price of the Model Y vehicle once again. The price increase has been taken as a show of strength in the company’s outlook as well as a move which should lead to higher profitability. With Musk once again strengthening the company’s ties with China as well as unveiling plans for the rollout of the much-awaited cybertruck later this year, investor sentiment has turned firmly bullish towards the stock. Traders now look to the FOMC later today which should act as a platform to drive shares higher near-term.
Technical Views
Tesla
The rally in Tesla shares has seen price breaking out above the bearish trend line from last year’s highs. Price is now testing the 255.61 level and with momentum studies bullish, the focus is on a further push higher here and a continuation towards the 313.11 level next. To the downside, any correction lower will see 207.71 come into view as the next support to watch, along with a retest of the broken bear trend line.
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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.