Excerpt from Blue Line Trading's subscription service's "Weekend Update" sent out Aug 22nd.
Tesla Lapping The Field
Confirmatory analysis rests at the intersection of fundamental and technical analysis. Said another way, if a stock has a good story and it's going up, it's a "Buy." If either the story or direction changes, it's a "Guess." If both turn sour, it's a "Sell." Forty years of stock and option trading reduced to a couple of sentences. You're welcome.
Tesla is lapping the field when it comes to its core business model and stock performance. Our only responsibility now is to manage how we own and trade it to the upside. So far so good. For the updated fundamental analysis and a reiteration of her previous $7000+ price target, and what looks like an imminent revision upwards, start here at the 40:00 minute mark: Catherine Wood of ARK Invest interviewed by Investor Business Daily, Aug 20th.
Technical Analysis: Next Price Target: 2122-2585
The 2-day chart below set out the higher probability targets from current levels, whether there is a price correction coming or not. These levels are based upon Elliott Wave principles and Fibonacci calculations. Only a significant correction of taking out the 1365 low of August 11th would require revision downward. A large enough correction in time and/or price that stays above 1365 could result in revisions upward.
Still To Come
How much of the following three catalysts has already been factored into the stock price is unknown. Probably some but not all, meaning the above referenced price targets has some basis not only in technicals, but fundamentals as well.
(1) Stock split (August 31st)
(2) Battery Day (Sep 22nd)
(3) Inclusion into S&P 500 (date unknown - probably within next 30 days)
First up: On August 31st TSLA begins trading at the price adjusted 5:1 stock split, i.e., the closing price as of August 28 (next Friday) divided by 5. Options: For every 1 option in an account there will be 5 and the strikes will be 1/5 current strikes, i.e., a $2000 strike will become a $400 strike.
Finally, as should be clear from the charts above, there will be more TSLA Buy Signals coming, whether it be from higher, or lower price levels.
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