Observations On The Popular Tesla Stock
Heading towards the 5:1 split on Aug 31 we can take a look at Tesla's (TSLA) chart technicals. Quickly glaring on the weekly periodicity we can observe a double inside week. Double inside bar tend to have a higher probability to take out both extremes which acutally happened on this week. The market tested the lower extreme, found buyers, and rose higher to target the highs.
Moving forward to the daily perspective we can see a balanced behavior that occurs for quite some days now. The market moves towards the current bracket high to find potential sellers. Buying opportunity would be in the lower balance extreme around the major HTF EMA50 in case of a pullback in our humble opinion.
Obviously, a breakout to higher prices because of the current underlying macro market conditions is probable.
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(Click on image to enlarge)
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What was the point of the stock split anyway?
Thanks for the question! The stock is quite expensive for some investors. A 5:1 split allows a wider cross section of investors to buy TSLA and makes it more accesible for Tesla emloyees to have the opportunity to buy the stock. Additionally it will change the wighting of the index in which TSLA is listed - the lower the share price the less wight that particular stock will have on the index. The cheaper price and to be able to buy a small amount of the full share will increase the investor's appetite in Tesla.
A much clearer explanation of what I had stated. Thanks for clarifying.
You're very welcome! We both deeply impressed the questioner, I presume. ;-)
Please keep in mind that the CEO of Tesla is a fantastic speaker! His delivery and speaking skills are far better than most folks. My claim is that that skill set contributes a whole lot to the rise in Tesla share prices.
The five-way split will put the share price at a low enough level that many more buyers will jump on, which is a smart move as I see it.
The whole thing is about marketing! Selling "the experience", as it were.
True and Musk is a visionary, but he's also highly unstable and "off." He'll cry or and get high in public interviews, chooses, odd nonsensical baby names that turn out to not even be legal, and is like Trump when it comes to Twitter. No filter, no care for the law, and ends up losing millions in completely unnecessary SEC violations.