Tesla stock marched higher Thursday afternoon, making a decisive move from its 50-day moving average, approaching an aggressive early entry, as the EV giant appears to be flashing a buy signal.
Tesla stock gained around 20% in November ahead of its Tesla Cybertruck delivery event and TSLA has continued its advance in December.
On Thursday, Tesla stock jumped 4.8% to 250.81 during afternoon market action, breaking above a trendline and decisively clearing the its 50-day line. That's one aggressive buy signal. Shares also are flirting with another early entry, using the Nov. 29 high of 252.75. TSLA stock hit 253.88 before paring gains slightly.
The stock is now building the right side of a double-bottom base giving it a 278.98 buy point, according to MarketSmith analysis.
Tesla Stock Shakeout
TSLA shares sank more than 3% early Wednesday, falling below the 50-day line and nearing the 200-day. That came on news that two Model 3 trims will lose all of their Inflation Reduction Act (IRA) tax credits in 2024. Meanwhile, Tesla will also perform a software update on more 2 million vehicles after the National Highway Traffic Safety Administration determined the EV giant's Autopilot system is prone to misuse after reviewing 1,000 accidents.
The over-the-air recall, stemming from the NHTSA's ongoing Autopilot safety probe, affects essentially every Tesla EV sold in the U.S.
However, Tesla stock rebounded as the market surged following the Fed meeting. Shares closed up nearly 1% to 239.29. So far in 2023, Tesla has more than doubled, broadly outperforming the broader S&P 500 index.
Tesla ranks fifth in the 35-stock IBD automaker industry group. The S&P 500 component has a 78 Composite Rating out of a best-possible 99. Tesla stock also has a 76 Relative Strength Rating and an 88 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Small Caps Soar, Tesla Flashes Buy Signal, But These Giants Sit Out
Learning How To Pick Great Stocks? Read Investor's Corner
Is Rivian A Buy Right Now After The Cybertruck Delivery Event?
