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MENAFN- Daily Forex)
Tesla continues to see a lot of buying pressure in pre-market trading on Monday, as we have seen a little bit of consolidation just below the $500 level and above the $470 level. This is a market that has recently broken out, and I think it is trying to build up momentum for the next move higher. The point at which we find ourselves in the calendar is going to be a little bit difficult for a market to truly take off, but I think you've got a scenario where short-term pullbacks end up being buying opportunities.
It is obvious that the $470 level has attracted a lot of attention. There are psychological concerns to the $500 level, and it is possible that there is a large options barrier there. But when you look at the totality of the price action on the chart, it looks very much like a market that is just simply continuing to the upside and ready to go higher given enough time.
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I don't have any interest whatsoever in shorting this market, and I do think every dip offers a little bit of value. With as many passive investing vehicles that there are that hold Tesla, it's very difficult for this stock to fall for long periods of time, and in fact, it's almost a buy on the dip situation year-round.
One of the latest headlines might actually be positive in the sense that it clears up the situation with Elon Musk. His pay package was approved in a Delaware court, so that relieves a little bit of tension. Elon Musk has also confirmed that Tesla's robotaxis remained operational despite a recent power outage in San Francisco, showing resiliency in what could be one of the more exciting ventures that Tesla finds itself in.
This is a market that will break $500 fairly soon, from everything that I can discern from this chart. The question will be whether or not it can do it between now and New Year's Day.
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