One of the major investing themes of the next decade (2020’s) is green energy.
Society feels a need / burden to cut emissions and investors need companies like Tesla to succeed.
In the long run, whether it will or not remains to be seen.
But as it stands, the price action is suggesting that Tesla (NASDAQ: TSLA) is succeeding. And the stock has tremendous price momentum to start the new decade.
Technically speaking, Tesla had one hell of a 2019.
The stock had every chance to break down and it did. But every time it seemingly broke down and was written off, it reversed higher. And on it’s latest price reversal it ended up breaking out of a 5 year base on base pattern.
The base on base price structure suggests there’s a lot of pent up energy which can lead to drastic moves.
The supporting psychology is interesting as well. For technicians, not too long ago you could’ve viewed this as a range breakdown. Now we have a 180 degree reversal with a long term breakout and the stock up 150% off the low.
Fundamentals have also taken a similar drastic shift. All of a sudden there is no denying Tesla’s competitors are flopping. This confirms the massive momentum shift to the upside that we’re seeing in the chart.
The strategy is simply buy pullbacks. Say there’s a sell off on news or a broad market pullback. Any move to 360-380s or a test of the 10 week moving average area would be a solid opportunity. We’re not early in the move, but when you zoom out, we’re not that late either.
Keep an eye out on twitter handle @ATMcharts as well as @seeitmarket for real time updates.
Thanks for reading and trade ‘em well!
Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.