January Delivery:
Can TSLA deliver a CLOSE in January above the MONTHLY cup base pivot of 414.60 on the chart below? This name is in the crosshairs of the new administration and looks like it has the wind behind its back. Often when a stock records a breakout during a certain period, but can not CLOSE above it it can spell disaster. The fact that bears have been unable to push this lower after December’s bearish shooting star, has to be considered a victory for the bulls. It finished 85 handles off the intramonth highs and in January is going for a rare 3-month win streak (just two have happened since Q4 ’21, in January-March 2023 and May-July of the same year). The WEEKLY chart sported a bullish engulfing week adding 8% last week and since the election has produced other robust gains of more than 20%, the weeks ending 10/25 and 11/8. Adding to the bullish theme is the bull flag on the ratio chart against AMZN and the bullish WEEKLY golden cross. Getting back to the MONTHLY chart below with the bounce off the very round par number at the nadir of the cup base a CLOSE above the 414.60 trigger next Friday would carry a measured move toward the low 700s, not out of the realm of possibility as call activity has been in that area. Can it deliver?