If Brandon, I mean Cathie Woods, were to buy more shares on Tesla, it wouldn’t surprise me. The recent analyst upgrade on TSLA is going to have a ripple effect.
What I’m looking at is for stocks like FCEL and NIO to give me a signal that they are trending higher based on industry momentum. Because that is probably a trend that is going to be around for a while.
A sustainable upward trend that could likely continue even though we are in the middle of a bear market. Because inflation = energy = higher prices = try to save money = spend less on gas = clean energy = electric vehicles. See the connection?
No? Then let me spell it out for you on the chart.
After earnings this morning, where the company reported disappointing earnings because of shutdowns in China, the stock dropped. But then it rose through the early session, holding above the 50-day moving average.
See all it’s going to take is for the price to stay in that vicinity or higher over the next few days and we’ll get a silver cross signal. That could signal a trend reversal.
A silver cross is where the 20-day moving average (yellow line) moves above the 50-day (green line). NIO is not there yet, but you can see that it is getting close.
And when it does, you’re going to want to watch TSLA as well. If they both maintain their rebound tragectory, then you’ll know this could be the beginning of something great.
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Quantitative Specialist, Penny Hawk
June 09 2022