TESLA THE QUEEN OF THE NASDAQ.

If a few years ago we were surprised by NVIDIA’s performance, now we couldn’t fail to see the rally of TESLA. On Friday, the stock finished the week with USD 1417, adjusting its annual performance to + 518.77%: on July 25, 2019 it was at USD 229.

TESLA – DAILY BAR CHART – DAILY CLOSING USD 1417 – UPDATED JULY 24, 2020

Tesla daily bar chart updated July 24, 2020 – daily closing USD 1417 – isin code US88160R1014

SHORT TERM

As you can see in the daily bar chart, the short term trade is still LONG with a stop level at 1311.34. Tesla (report from Inch Platform – any report on demand is free on www.inchcapital.com) is the strongest blue chip in the world. It was selected from Inch Platform DSS based on trend and momentum. Tesla placed first not only at the top of the Nasdaq index but is also at the top of all the main large caps, listed by the MSCI ACWI IMI TR index.

JUST BE CAREFUL…..

Although is extremely liquid, Tesla shows high volatility levels (ranking INCH 8), which expose the investor to significant price changes. Just think that the average range for the last 14 trading days is approx. +/- 6%, with peaks that can also reach slightly less than 20% of the daily intraday range, as evidenced on July 13, 2020. It is a risk that the investor must keep in mind, as not everyone is willing to endure such marked price fluctuations, especially in the very short / short term.

TESLA – WEEKLY BAR CHART – DAILY CLOSING USD 1417 – UPDATED JULY 24, 2020

Tesla weekly bar chart updated July 24, 2020 - daily closing USD 1417 - isin code US88160R1014
Tesla weekly bar chart updated July 24, 2020 – daily closing USD 1417 – isin code US88160R1014

MEDIUM AND LONG-TERM

The bullish trend is also confirmed by the weekly chart, which highlights two particularly important support areas: a) the bullish gap that opened three weeks ago between 1266 and 1228, the first zone to be monitored in the event of corrections; b) the area between 1027.50 and 1000. The protection of the medium / long-term bullish trade is currently adjusted to 1052.45 and will be automatically updated by the Inch Platform based on the dynamics of the movement.

PATTERN PREDICTION FOR THE NEXT 20 TRADING DAYS – UPDATED JULY 24, 2020

InchCapital Platform – Tesla – Pattern Prediction for the next 20 trading days – Updated July 24, 2020
InchCapital Platform – Tesla – Pattern Prediction for the next 20 trading days – Updated July 24, 2020

The one-month quantitative forecasts, updated every week only one the markets have closed, highlight a substantially sideway prospective trend with a largest increase of 17.99% and a maximum decrease of 39.39%. The perspective range is high but is compatible with the characteristics of Tesla. Since the short-term trade is still LONG,  we will follow the upside protected from the stop level of 1311.34,  adaptable day by day.

TREND STAGE DAILY AND WEEKLY – UPDATED JULY 24, 2020

Cyclical phases are discordant. For the short term, we are decreasing and therefore there are chances to have an extension of the correction. For the medium / long term, the perspective is still bullish.

IN CONCLUSION

due to its strong volatility Tesla is a stock that can climb or fall more than the NASDAQ 100 index (report from Inch Platform). Therefore it cannot be considered on its own precisely because in the past it has highlighted this characteristic which cannot be underestimated. Now since both the NASDAQ 100 index and Tesla itself are in statistical excesses, after an uninterrupted rally of about four months, it is possible that corrective phases are imminent. This perspective will tend to progressively establish itself at the first daily close of the Nasdaq 100 index below 10313. So TESLA is definitely the queen of NASDAQ but at these prices you can fail the the timing of entry level. To continue in the bullish phase it is essential to register today or at the latest tomorrow Tuesday July 28, 2020 a daily closing higher than the corresponding open price level. On the other hand, further decreases will confirm the alert signal provided by the above-mentioned daily trend stage.