Tesla Technical Analysis (NASDAQ:TSLA)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. Just by looking at the Tesla stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the TSLA stock chart which creates a trading signal.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Tesla. The technical analysis form of Tesla stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Tesla Moving Average:
TSLA stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Tesla chart patterns after the calculations remain the same. The 100 day moving average of 33.63 is above the last closing price of 238.36. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Tesla are mostly signals of long term trends and will help long term traders.
Tesla Bollinger Bands:
Bollinger bands comprise of a center line usually TSLA SMA, and two TSLA stock price bands above and below it. The stock is considered over brought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Currently the stock price of $238.36 is in the lower range of Tesla bollinger bands.
Tesla Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Tesla MACD line is above the signal line.
Tesla Relative Strength Index:
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of TSLA stock is 79.2. .