Tesla TSLA traded as high as $414.49 during the week of November 5, 2021, then traded as low as $101.81 during the week of January 6, 2023. This was a bear market decline of 75.4%, which has been consolidated since then. The subsequent high was $299.29, set during the week of July 21, 2023. The week of July 21 was a downside key reversal with a close that day at $260.02, below the low of $265.10 set on July 14.

The daily chart below shows the annual value level at $192.92. The weekly chart is negative with the stock trying to hold is 200-week simple moving average at $206.87, which is considered the “reversion to the mean.”

Tesla has an elevated p/e ratio at 69.6% and does not offer a dividend, according to Macrotrends. The stock missed earnings-per-share estimates for the quarter just ended and reported on October 18. The stock beat EPS estimates for ten quarters in a row before this miss.

The Daily Chart for Tesla

Tesla was trading lower 52 weeks ago and traded as low as $101.81 on January 6, 2023. The stock was trading below its 50-day and 200-day simple moving averages. January 6 was a positive key reversal day as the close of $113.06 was above the January 5 high of $111.75.

This key reversal buy signal gained momentum on January 26, 2023, on a gap above the 50-day simple moving average then at $151.53. The next buy signal was confirmed on June 23, 2023 with a golden cross. A golden cross occurs when the 50-day SMA rises above the 200-day SMA.

After trading as high as $299.29 on July 19, 2023 there was a gap lower on July 20. This occurred despite the earnings beat reported after the close on July 19. The next gap lower on October 19 was in reaction to the earnings miss reported on October 18.

The horizontal lines from top to bottom are the monthly risky level at $286.59, the quarterly pivot at $251.29, and the annual value level at $192.92.

The Weekly Chart for Tesla

The weekly chart for Tesla is negative with the stock below its five-week modified moving average at $236.65. The stock is trading around its 200-week simple moving average or ‘reversion to the mean’ at $206.88. The 12x3x3 weekly slow stochastic reading is declining at 38.02. The stochastic readings scale from 00.00 to 100.00 with a number above 80.00 overbought and below 20.00 oversold.

Trading Strategy: Buy Tesla on weakness to its annual value level at $192.93. Reduce holdings on strength to its quarterly pivot at $251.29.