The Tesla earnings report is likely to be met with buying. These are several reasons for this point of view.
First, note that the monthly price cycle has bottomed. And, it is occurring as Tesla’s second strongest month of November, is about to begin as can be seen in the monthly histogram of expected return. From October 21st to yearend, the share price has risen 71% of the time for an average gain of 18%. The current technical position of the stock confirms the cycle strength. In the monthly strip, note that price has broken out of a formation that projects much higher prices. There are higher lows in momentum and an upturn in relative strength. This is one of the few technology stocks that are not overbought on a monthly basis. The $240-$245 level is a reasonable first objective.
Monthly Tesla Cycle
Tesla Monthly Histogram
Tesla Daily, Weekly, Monthly
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