NEW YORK (TheStreet) -- Good morning, traders!
1. First let's look at the market darling, Tesla, which designs, develops, manufactures and sells electric vehicles, as well as electric powertrain systems and components for other automotive manufacturers.
Tesla traded positive on Monday, closing up 2.7% to $216.61 per share.
- Monday's range: 208.53 - 217.69
- 52-week range: 55.12 - 265.00
- Monday's volume: 4,777,330
- 3-month average volume: 9,079,480
Telsa looks very good at this level, and today will be the deciding factor on whether it is time to buy. For the last five trading days, Tesla closed over the t-line (8 exponential moving average, or 8 EMA), and is in a very short term up trend. Now the moving averages are beginning to cross over one another. We had a t-line/20 SMA cross on Friday, and now we are having a 20 SMA/34 EMA cross today.
This is a sign of a reversal. However, it's not a buy yet.
Today, shares need to break above the recent resistance level of $218.64, thereby creating a higher high. I'd set a trigger at about $220, or for those of you who are a little more conservative, set your trigger on a close above the 50-day simple moving average at $222.42.
There are overhead resistance levels at about $230, $237.23, $244.50 and $252.70.
This stock is volatile. Everyone wants to trade it, buy it, watch it, talk about it. It is a cult stock. It has been in a much-needed downtrend since it reached its 52-week high of $265 back in February.
I see it turning around today. As soon as this thing does turn around, investors are going to be buying it up in droves. Enter above the 50-day SMA, and stay long until you see a sell signal or a close below the t-line.
Tesla reports earnings tomorrow after market close. Whatever the outcome of the earnings report, you can almost guarantee that there will be a big move after that report. Tesla always gaps after earnings.
2. Next let's check out our news feed on Facebook, the worldwide social networking company. Facebook provides a set of development tools and application programming interfaces that enable developers to integrate with Facebook to create mobile and Web applications.
Facebook traded positive on Monday, closing up 1.26% to $61.22 per share.
- Monday's range: 59.18 - 61.35
- 52-week range: 22.67 - 72.59
- Monday's volume: 45,502,051
- 3-month average volume: 69,834,10
I know that you check your Facebook page every five minutes to find out who loves you and who thinks you're funny, smart or interesting.
Facebook looks good from a technical standpoint, because yesterday it formed a bullish piercing signal. The piercing candle almost formed a bullish engulfing signal.
The sentiment is clear: investors want in.
Facebook needs to break above some near-term resistance levels before most investors will buy long. One resistance level is at the 50-day simple moving average at $63.82.
For those who are adventurous, now is the time to get in. Shares closed over the t-line, the 20-day simple moving average and the 34-day exponential moving average. Plus the stock chart formed a piercing signal and a double bottom.
What more do you need?
Facebook reported excellent earnings at the end of April, but it has taken some time for investors to catch up. Now the stock is gaining some momentum. Set a stop below yesterday's low at, say, $59, and target the 52-week high. Stay long until you see a confirmed sell signal or a close below the t-line.
3. Next, let's look at PepsiCo, which operates as a food and beverage company worldwide.
Pepsi's Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos and Santitas tortilla chips; Fritos corn chips; Cheetos cheese-flavored snacks; plus dips. The company's Quaker Foods North America segment provides Quaker oatmeal, grits, and rice cakes, as well as Aunt Jemima mixes and syrups, Quaker Chewy granola bars, Cap'n Crunch and Life cereals, Rice-A-Roni side dishes, Quaker Oat Squares and Quaker Natural Granola.
Pepsi traded positive on Monday, closing up 0.46% to $85.91 per share.
- Monday's range: 85.14 - 86.08
- 52-week range: 77.01 - 87.06
- Monday's volume: 2,888,943
- 3-month average volume: 6,089,780
Pepsi has been doing great for the last two and a half months, trading up 11% since reaching its 52-week low of $77.01. Yesterday, Pepsi formed a bullish engulfing signal, and will likely trade higher today.
There is overhead resistance at $86.69 and at the 52-week high of $87.06. As with all candlestick signals, we need to see confirmation today. Any positive trading today will be a buy.
I'd set a stop below the 20-day simple moving average at $84.93, and target the 52-week high.
Pepsi is a simple analysis. It's a very successful company with tons of historical data, and is a pretty safe bet. Pepsi reported positive earnings back in April, and has been trading nicely since.
Stay long until you see a confirmed sell signal, or a close below the t-line (8 EMA).
Good luck traders!
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At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.