- TSLA stock actually performed well on Monday, rising 0.31%.
- Stock markets suffered sharp falls on Monday.
- Tesla shares just finding support at the 200-day moving average.
Monday saw a strong performance from Tesla, well everything is relative. As the broader market dumped over 2% and some big names like Apple and Google suffered steep falls, Tesla actually closed higher on the day at $646.22. In the process, further confirming the power of the 200-day moving average as Tesla sits just on the long-term indicator.
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Tesla key statistics
| Market Cap | $620 billion |
| Price/Earnings | 651 |
| Price/Sales | 22 |
| Price/Book | 28 |
| Enterprise Value | $753 billion |
| Gross Margin | 0.21 |
| Net Margin |
0.03 |
| Average Wall Street Rating and Price Target | Hold, $657 |
Tesla stock forecast
Monday's outperformance is not too surprising when you go into more detail on the chart. The current zone Tesla sits in has a lot of support factors in play. There is a lot of volume at this price level as we can clearly see from the volume profile bars on the right of the chart. These show the amount of volume at each price point. Generally, a stock will move slowly through areas of high volume and quickly through areas of low volume. Volume is a hugely important indicator, second only to the price itself. So, as FXStreet mentioned on Monday, this area is likely to result in some choppy trading. There is no strong directional bias in play and, with results just around the corner (next week), this choppiness is likely to continue.
But with Monday's bounce that gives slightly more credence to taking long positions with the first target being the 9 and 21-day moving averages at $653 and $655. Breaking this should see a bit more speed to the move and equity markets should bounce slightly after Monday's steep losses. But, again, with results due shortly any decent trend is unlikely to materialize so use careful risk management.
The key levels remain unchanged. As FXStreet said yesterday, it is "better to wait for a break of $591 as the lack of volume beneath here should see a price acceleration. Support would then come in at $546 from the May low and $539 from the March low. Until then, results next week on Monday, July 26, will give better directional clues. Buying a put with a strike under $590 could benefit from an acceleration in price due to lack of volume. The same can also be said with regard to buying a $715 or higher call. Volume is light above. Earnings may push the price in one of these directions". This is still the case and the best strategy until a breakout occurs.
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