Tesla (TSLA) reported better-than-expected earnings after the shut on Wednesday. This despatched the inventory value hovering, which was sufficient to place TSLA inventory within the lead within the Giant Cap High Up StockCharts Technical Rank (SCTR) Report class. It was additionally probably the most actively traded S&P 500 ($SPX) inventory.

FIGURE 1. SCTR REPORT FOR LARGE CAP TO UP CATEGORY ON OCTOBER 24. TSLA inventory reached the highest of the class after reporting better-than-expected earnings.Picture supply: StockCharts.com. For instructional functions.

Tesla Inventory Evaluation

TSLA’s inventory value has struggled since November 2021. After hitting a low in January 2023, TSLA inventory has been uneven—rising until July 2023, then pulling again, climbing, pulling again, climbing, and falling on the unimpressive Robotaxi day (see weekly chart of TSLA beneath).

FIGURE 2. WEEKLY CHART OF TSLA STOCK. The inventory value is near its earlier weekly excessive. A transfer above that prime would assist an uptrend within the TSLA’s inventory value.Chart supply: StockCharts.com. For instructional functions.

After the robust Q3 earnings report, the inventory is climbing once more. Will it bust via its earlier excessive to proceed its uptrend?

TSLA’s inventory value on the day by day chart is rather more erratic than the weekly chart, with many up-and-down value gaps.

FIGURE 3. DAILY CHART OF TSLA STOCK. The inventory broke above the higher Keltner Channel, the SCTR rating spiked, and the StochRSI indicator jumped from oversold to overbought territory. Might this be the start of an uptrend?Chart supply: StockCharts.com. For instructional functions.

The latest earnings report reveals a large breakaway hole up in value. The SCTR rating spiked from round 41 to over 90. TSLA’s inventory value has additionally moved above its higher Keltner Channel, which has began to show upward. This means important energy within the inventory and the start of an uptrend.

Sooner or later does not make a development, so utilizing a momentum oscillator such because the StochRSI when utilizing Keltner Channels might help decide whether or not the uptrend will proceed. The spike in TSLA’s inventory value brought about the StochRSI to leap from oversold to overbought territory in at some point—on this case, it went from 0 to 1, which is uncommon.

Buying and selling TSLA Inventory

A major soar in a preferred inventory resembling TSLA will tempt traders to get in on the value motion. However as a wise investor, do you observe the gang or look ahead to a pullback earlier than leaping in? I’d watch the StochRSI or another momentum indicator of your alternative, look ahead to a pullback, after which search for momentum to kick in earlier than leaping into the inventory.

From the weekly chart, it is clear there’s numerous upside momentum in TSLA inventory. However the way in which the inventory has been buying and selling these days may imply a whole lot of choppiness forward. If that is the start of a short-term uptrend, you may look ahead to a pullback to the higher Keltner channel earlier than leaping in. The inventory may do what it did in early July, or pull again to the center line (20-day exponential shifting common), just like what it did in October.

The Backside Line

I’d add TSLA to my Watchlist ChartList, which I take advantage of so as to add charts I am contemplating buying and selling. If you have not achieved so already, it is best to make sure to set up the StockCharts ChartList Framework to arrange your ChartLists higher.

Monitor TSLA’s chart commonly. I’d have this one up on my display screen all through the buying and selling day, as a result of it might be a worthwhile short-term commerce or one that’s price holding on to for an extended interval. For a quick-moving inventory like TSLA, it is best to observe the momentum. Establish your entry and exit ranges, apply strict cash administration guidelines, and observe your plan. Whether or not you select to do a short-term commerce or a longer-term one will depend on your danger tolerance degree.

Disclaimer: This weblog is for instructional functions solely and shouldn’t be construed as monetary recommendation. The concepts and methods ought to by no means be used with out first assessing your individual private and monetary scenario, or with out consulting a monetary skilled.