Tesla: Buy The Rumor, Sell The News

If you ask most people about the sell-off earlier this year, they will blame the Ukraine invasion. The funny thing is that the invasion marked the BOTTOM, almost to the millisecond. Feb. 24!

Take Tesla (NASDAQ:) (please!) Since Feb. 24, it has climbed 57%. Fifty. Seven. Percent. That’s the kind of return one would hope for over a five-year time span, not five weeks. But there we have it.

Tesla 1-Hour Chart

All this was based, of course, on the meaningless news about a stock split. But people gobble that kind of thing up, so they piled right in. Please take note of the slow-moving Bollinger Bands and where the present price is (I would also ask you to note that these same BBs nailed the bottom precisely). I don’t think there’s much left to this rally.

Tesla Weekly Chart

Even more straightforward is the broken trendline. Today’s $80 price ascension has crammed the price bar against its broken trendline. That, to me, is compelling evidence of imminent exhaustion.

Tesla Weekly Chart

Finally, if I may say so, here is a chart of the stock split last time. Please note the small letter “S” on the left side of the chart. That marks the day of the split. Now, I recognize there is a difference between a split day and an announcement that they are considering a stock split. But I simply offer the chart below to clarify that just because stock splits doesn’t mean it instantly flies higher. The last time, this was a nearly perfect “buy the rumor, sell the news” kind of event.

Tesla Daily Chart

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Comments are closed, but trackbacks and pingbacks are open.