Ain’t life in the fast lane these days for You’re here (NASDAQ:TSLA). Nor is it a rescue offer for the truck. But as we’ll see, the improvements off and on the price chart make TSLA stock worth the parking capital today.
Apparently distant nervousness linked to China Evergrande (OTCMKTS:EGRNY) from the real estate scandal to the more recent US debt ceiling and the ghosts of inflation, seasonal downtrends have returned home to roost in September and come out in October. But not for TSLA.
Unlike the wide base S&P 500 or highly technical Nasdaq and the major constituents of these indicators – such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and many others who have come under pressure amid those disruptive booms – TSLA stock is up nearly 6% since early September.
I guess the bad news for some investors is that if you’re looking for a good deal, you won’t find it at Tesla.
Combined with TSLA’s 11% year-to-date return versus 12% Nasdaq and stocks around 13% off its all-time high, investors are not looking for bargains in the classic sense.
Another subset of investors may also be less appealing to TSLA stocks.
Fortunately, for dynamic traders looking for thrill rides, the price action defying today’s Tesla stock market isn’t the quick and generous returns that the world’s dominant brand of electric vehicles is. known to offer its shareholders.
Still, there is a reason for this failure in some way. And in a good way, it’s worth buying.
Today there are far fewer doubters against Tesla. In fact, bearish shorts betting against and fueling legendary TSLA rallies as the outfit steadily reversed milestone after milestone hit a all-time low at just 1.1% of Tesla’s free float according to Bloomberg.
It’s a far cry from short-term interest rates that last year reached as high as 20%. In addition, there are still reasons for the massive exodus of bears from TSLA action.
This week, Tesla announced quarterly deliveries of 241,300 vehicles. This is the kind of figure that clearly allows the automaker to sell 1 million units per year.
Last month, the boisterous founder and CEO told employees in an email that the company could sell around 5-10 million vehicles a year by 2025 if the company can “run really well.”
And especially for investors’ own results, one of TSLA’s biggest fans, top growth fund manager Cathie Wood of Ark Invest doesn’t shy away from what she still believes is a huge opportunity.
The active and aggressive fund manager offered Tesla shares could be worth $ 3,000 over the next four years and about four times the current market price.
And it’s not just lip service from the founder of Ark Invest.
TSLA stock was and remains the number one position of the emerging investment company with a weighting of more than 10% of its ETF Arche Innovation (NYSEARCA:ARKK). Plus, it’s a significant stake given that it owns over 2.5 million shares valued at nearly $ 2 billion.
TSLA monthly stock price chart
Source: Charts by TradingView
Missing some of its past short-term momentum and being taken out of cherry pick levels isn’t a blow to Tesla. Not today at least, as the price chart offers investors the opportunity to buy a classic entry into the TSLA stock’s bullish trend.
Technically, and as the monthly chart shows, stocks have made their way into the good side of TSLA’s ten-month-old corrective base.
Today, the formation has taken the rounded form of a bullish cut. But the price structure has actually started to take the corrective turn in the form of a double bottom or a ‘W’.
Right now, the central hub of this formation is active with stocks parked squarely at the initial signal price of $ 780.79.
More approvingly, the double bottom buy trigger is well aligned with Tesla clearing the 62% level from the base. And with cross stochastics on the upside and just breaking out of oversold territory, today’s TSLA stock is a treat – and it’s even better thanks to a bullish $ 800 / $ 900 buy spread. in December.
As of the publication date, Chris Tyler holds long positions in Ark Innovation ETF (ARKK) and its derivatives (directly or indirectly), but no other securities mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.
Chris Tyler is a former ground-based derivatives market maker on the US and Pacific stock exchanges. For additional market information and related thoughts, follow Chris on Twitter. @Options_CAT and StockTwits.