How to Trade Tesla From Correction Territory

Tesla Inc. is one of the strongest momentum stocks of 2017. The stock is up 60.5% year-to-date at Monday’s close of $342.94 and is well into bull market territory, 92.5% above its post-election low of $178.19 set on Nov. 18.

Recent news of production delays for the Model 3 Tesla has the stock in correction territory 12% below its all-time intraday high of $389.61 set on Sept. 18.

The stock is rebounding today as Morgan Stanley raised its price target to $379 per share while maintaining their equal-weight rating. This is not a big deal as this target is below the all-time high.

The daily chart for Tesla has been above a “golden cross” since Feb. 1. This positive technical signal occurs when the stock’s 50-day simple moving average crosses above its 200-day simple moving average indicating that higher prices lie ahead. The stock closed that day at $249.24 and the stock is up 38% since then.

 

Tesla set its all-time intraday high in September, and then fell into correction territory as October began. Here’s how to trade this momentum stock. …read more

Read more here: How to Trade Tesla From Correction Territory

Category: TSLA

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