Senior Market Strategist on Tesla Stock's Chart Support

Lucid Group stock could be an EV pick for 2022

Managing Editor
Sep 28, 2021 at 8:00 AM
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Electric vehicles continue to grow in popularity. As the sector and adjacent markets enter the mainstream, it presents a treasure trove of opportunities for investors. Earlier this week, Schaeffer's Investment Research's Senior Market Strategist Matthew Timpane was a featured presenter at the Benzinga Electric Vehicles Conference. You can view the entirety of his presentation here.

Timpane's slot was so well received, we wanted to further highlight the EV stocks he discussed. First up, we had Lucid Group, Inc. (NASDAQ:LCID). Now, Matthew explores EV heavyweight Tesla Inc (NASDAQ:TSLA)

Matthew: Would it be a conference without looking at a Tesla Inc (NASDAQ:TSLA) chart? The stock sitting here in this channel going back and forth, after finding this base here. Oddly enough, from a traders perspective, what we saw was this -20% year to date level. Now it's just kind of riding this channel up and down finding support to break through the 200-day level, but right now It's kind of been holding that even amid this volatility the last few days.

TSLA EV Stock Chart

TSLA also has the rising 20-day moving average it tends to hold on to in bull rallies.  The buy to open 10 day per call ratio that's in the 89th percentile options are pretty cheap, they're being priced in the sixth percentile, and we have a massive peak put level down at the $700 level right here in this channel.

Then there's that 200 day moving average, if we did for some reason break below that level. That's when you'd want to kind of just get out of it. You do have significant downside risk then when it breaks those peak levels. We can easily see $565 -$580 range or even $500. But you know analysts are very still mixed on Tesla because it is outperforming, and it's an expensive stock but it's expensive for a reason. So those are our thoughts here on Tesla.

 

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