Tesla (TSLA) Stock is the 'Chart of the Day'
NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Report stock is rising by 0.68% to $217.68 in midday trading on Tuesday.
The electric car maker announced plans last week to sell $2 billion in stock in an equity offering to ramp up output of the Model 3 sedan.
However, while this secondary offering takes one of the clear bear arguments off the table for Tesla shares, Oppenheimer analysts still believe there are lingering doubts on the company's ability to reach production goals and operating leverage.
Despite these concerns, the firm is hopeful overall on the company's future as they expect Tesla to get the "benefit of the doubt and believe the company still deliver enough to drive shares substantially higher."
TheStreet's Chris Versace and Bob Lang have identified Tesla Motors as the "Chart of the Day." Here's what they had to say about the company:
The downtrend channel for Tesla is well defined, and while there might be some room to rise, there is more important resistance, as the stock is challenging the 200-day moving average.
The stock has risen about 4% from the recent lows and we can see the volume levels have swelled.
A recent secondary of shares was announced and buyers scooped up the stock, somewhat unusual.
The indicators, however, show this stock may be headed lower. The RS is weak and while the moving average convergence divergence (MACD) just flashed an oversold buy signal.
If there is some follow-through to the downside, we should see a lower low coming. There are several gaps to be filled under $200.
Chris Versace and Bob Lang's "Chart of the Day: Tesla" was originally published on 5/24/16 on Trifecta Stocks.
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