Tesla, Inc (NASDAQ: TSLA) gapped up over 3% Tuesday in tandem with the S&P 500, which opened the regular session up 0.77%.
The electric vehicle giant has staged a rebound over the last six trading days, rising almost 15% from the Oct. 24 52-week low of $198.59. The reversal to the upside finished off a mostly bearish late September and October, where Tesla plunged about 36% between Sept. 21 to when the stock briefly lost support at $200.
The New York State Teachers Retirement System added to its position in Tesla during the third quarter. The fund purchased over 171,000 shares between June and September, taking the valuation of its holdings to over $837 million.
Following Tesla’s mixed earnings print on Oct. 19, which caused the stock to drop to new lows, Cathie Wood-led ARK Investment Management used the dip to add to its position. The fund purchased about $2.28 million of the stock through its ARK Autonomous Tech. & Robotics ETF (NYSE: ARKQ).
Five days previously, Wood’s flagship ARK Innovation ETF (NYSE: ARKK) used the post-earnings slump to add an additional 66,000 shares of Tesla.
Although Tesla looks to trade higher over the coming days due to a bull flag that has developed on the chart, the Federal Reserve’s Wednesday decision on interest rates could hamper a move.
On the flip side, if the Fed comes out more dovish than expected, a reaction to Tesla’s bullish pattern could be accelerated.
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The Tesla Chart: Tesla formed a possible bull flag between Oct. 24 and Monday, and on Tuesday the stock appeared to be breaking up from the formation. The measured move of the bull flag is just under 18%, which suggests Tesla could soar up toward $261 in the future.
If Tesla can complete the entirety of the measured move, which is dependent on how the market reacts to the monthly Fed minutes, an upper gap between $257.50 and $262.47 will fill. If that happens, Tesla may find resistance at the upper range of the gap. Tuesday’s spike caused Tesla to confirm the stock is trading in an uptrend because a higher high above the most recent high of $233.81 was printed. Tesla’s most recent higher low was formed on Friday at $216.35. Tesla has resistance above at $234.35 and $254.98 and support below at $225.03 and $213.13.
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