To The Moon

I have written an article last night showing why I think $Tesla Motors(TSLA)$ is worth a BUY last night.

In this article I would like to share the target price I am expecting Tesla to reach after its significant performance. I will be using Supertrend which is a popular technical analysis tool used in trading to identify the direction of a trend and generate buy or sell signals. It combines price data with volatility measures to produce a line that indicates the general trend direction.

Before we go into the supertrend and probabilities, I would like to show you how does Tesla fare in the usual indicators.

Tesla Trading Above Its 50-day Period

This is an important signal as Tesla has moved from trading near the 50-day period to a significant range above it. This indicate that we could be seeing some strong price action.

We cannot based on just one time rise to determine if Tesla truly show the potential for more upside. I would use MACD to give us some confirmation if Tesla truly is going on a bullish run.

Tesla MACD Crossover Forming Observed

If you have been following my article, you would discover that I use the MACD crossover and how MACD signal line is moving to determine whether a stock is experiencing some upwards movement.

If we looked at how Tesla have been doing before yesterday trade, we will discover that MACD signal is below, which suggest that bullish upside is not present, but we could see that the signal line is trying to make a move upside.

I personally would monitor the price action today (22 May) to see if Tesla really going to show us what its is truly worth.

Tesla KDJ Has Shown Consistent Upside Move

If we looked at how Tesla has moved since the last BUY signal appeared for Tesla on 16 May 2024, we do not see any weakening of the J value.

J value crossover with other 2 lines would indicate a BUY, if J value start to form a downside trend, then we could be seeing SELLING pressure, but Tesla J value is still showing strength of more upside move.

Tesla Supertrend and Probabilities

Before I share why I think the next target price is around $210, I would like to share how I use supertrend targets and probabilities to derive it.

If you looked at the below chart, you would noticed that Tesla price is above the Supertrend line, it indicates an uptrend. So if the price goes below, then it is a downtrend.

Next we need to understand how do we see if there is a Buy signal, even though I use KDJ for that, but I think it is good to understand that when the price crosses above the Supertrend line, it indicates a potential buy opportunity.

Now coming to the measure of volatility, representing the degree of price movement. Average True Range (ATR) is used to set the distance of the Supertrend line from the price. We also use a multiplier that scales the ATR to adjust the sensitivity of the Supertrend indicator, in this case 2 was used.

So this help me to determine that the next price target move could be $210.

Summary

Even though we could use technical analysis to determine how Tesla would be trading, but do remember that Tesla is very sensitive to any news or events.

So as informed investors, I would still be keeping a lookout to see how Tesla news played out and whether the investors sentiment decrease or investors are getting hyped again. As of now, technicals have provided confidence of Tesla performance on the better side.

Appreciate if you could share your thoughts in the comment section whether you think Tesla would continue its performance and move above $200 or the $210 level?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.