Shares are up 2.6% at last check and on the verge of hitting $800 as Tesla works on its fifth straight daily gain and 10th gain in the last 11 sessions.
Further, Tesla stock is hitting its highest level since February. The outperformance comes at a time where many EV SPAC holdings are down significantly from the highs and even as NIO (NIO) - Get NIO Inc. Sponsored ADR Class A Report sits on the edge of multi-month lows.
For what it’s worth though, Ford (F) - Get Ford Motor Company Report is also enjoying the day, up 3.3% at last check and hitting its highest price in almost two months. We have liked the way this one has been trading, in addition to Tesla.
Tesla CEO Elon Musk is making a big push when it comes to deliveries and the automaker will now beginning its “most intense delivery week ever.”
Can the stock keep rallying?
Trading Tesla Stock
A few weeks ago, we were right on trend with Tesla, flagging the stock’s ability to bounce off key support as it chipped away at $760 resistance.
That grind continued, just as support continued to hold. As long as the stock market avoided a free-fall, Tesla stock was pointed higher.
On Friday, shares burst higher on above-average volume, closing at multi-week and multi-month highs and closing above the 61.8% retracement. Tesla continues to push higher on Monday, clearing the key $781 level and setting its sights on $800.
From here, I’m more concerned about the downside than I am of the upside.
Specifically, I want to see the $780 level act as support. If that’s asking for too much, I at least want to see $760 and the 61.8% retracement act as support, along with the 10-day moving average.
Below these measures puts the 21-day moving average in play, potentially followed by $727.
As for the upside, keep an eye on $800. Above that mark puts the 78.6% retracement in play near $823. Should the stock clear that mark, it’s possible we see a move up toward the $880 area.
While many will critique Tesla’s valuation and market cap of nearly $800 billion, it’s hard to argue about the stock’s momentum. My gut says to stick with that momentum until it wavers.