Stock of the day: Tesla

By Tomasz Wisniewski |

Published: July 25 2022, 12:09 GMT+0

Stock of the day: Tesla

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Earning season is at its height and in today’s piece we look at Tesla, which already reported its earnings last week. They were better than expectations, so no surprise that they helped push the price of Tesla higher. EPS was at 2.27 USD, instead of the expected 1.81 USD and revenue grew by 42%.

Tesla was waiting for the results in a mid-term sideways trend, inside of a pennant formation (green). The pennant started in May, shortly after Tesla dropped significantly breaking the major up trendline (lower blue line) and the horizontal support at 770 USD (yellow).

The earnings report helped Tesla escape from the pennant formation and break the 770 resistance level. By climbing above those two, we got a buy signal, which is valid as long as the price stays above the yellow area. Sentiment on Tesla is positive it seems like the price returning above the lower blue line, is just a matter of time.

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