Tesla (TSLA) caught my eye on Monday because its StockCharts Technical Rank (SCTR) surged over 20 points. The image below shows the SCTR tables for large-cap stocks and ETFs. Notice that I clicked the Top Up tabs to view those with the biggest SCTR gains. Micron (MU) is the top gainer and Tesla is second in early trading on Monday. You can find these tables mid-way down on our homepage. We will look at the chart after the jump.
On the price chart, TSLA shows a strong advance followed by a falling channel. I view this falling channel as a correction after the advance. Notice how the stock reversed near the 61.8% retracement and filled the June gap with the surge into July. Tesla is currently battling the upper trend line of the channel and making a breakout bid today. The indicator window shows the SCTR surging above 50 for the first time since mid June. Also notice that the SCTR has been rising since late June and TSLA is starting to show some relative strength. Note that Tesla reports earnings on August 3rd and increases the chances of near-term volatility.
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Thanks for tuning in and have a great day!
--Arthur Hill CMT
Plan your Trade and Trade your Plan
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