After recent price cuts and low expectations of only $.85 per share or a 20% drop since a year ago, many eyes will watch Tesla after the close.
Tesla, always controversial, can either beat those low expectations and provide a low risk buy opportunity against major moving averages,
With Musk on a call shortly thereafter the numbers are published, he can just as easily talk the price down.
Regardless, it is always about the expectations and forward guidance, regardless of how many analysts chime in ahead of time with their predictions.
That of course, and the price charts.
The first chart is a Daily timeframe.
The divergence between momentum and price is most interesting.
While our Real Motion says bullish phase and the indicator sits right on the 50-daily moving average, the price says bearish phase.
A move over the 50-DMA in price or 192.50 would be compelling based on the better momentum.
On the weekly chart, price is better than momentum.
The $177 level is big support to hold based on the 200-WMA. Momentum is in a bearish phase while price is in a caution phase.
Hence, a move over 192.50 could take price up to around 215 next. Under 177 we could see 120-125 just as easily.
In between? Just like the rangebound market- tough call.
Stock Market ETFs Trading Analysis & Summary:
S&P 500 (SPY) Tight range to watch this week 412-415
Russell 2000 (IWM) 170 support- 180 resistance
Dow (DIA) Peeking over the 23-month MA 336-impressive if holds
Nasdaq (QQQ) 312 support over 320 better
Regional banks (KRE) 41.28 March 24 low held and now has to clear 44
Semiconductors (SMH) 258 resistance with support at 250
Transportation (IYT) 219-228 the wider range to watch
Biotechnology (IBB) 130 major pivotal area-135 resistance
Retail (XRT) 58- 64 trading range to break one way or another
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.