Tesla may join Magnificent 7 rally
Tesla moved in a downtrend channel from Jul 2023 after hitting 299.29. It bottomed at 138.803 in Apr 2024 when it rebounded from the bottom of the downtrend channel.
![Tesla may join Magnificent 7 rally](https://sgsnsimg.moomoo.com/sns_client_feed/102079252/20240703/abc5b6d87170065e5facabaca097938a.jpg/big?area=101&is_public=true)
During May and Jun, it formed a bullish double bottom. Then it broke out of the downtrend channel in Jun.
Traders may want to push Tesla to rally to around 300. This may be a LIFO rally. It may be the last in to join the Magnificent 7 rally and the first out of the rally.
Tesla rallied 10% and broke out the the 200 resistance after slightly exceeding Q2 deliveries expections of 436,000 vehicles by only 7, 956. Also, Tesla said they will be unveiling the robotaxi on Aug 8.
Still, it's a year-over-year decline around 5% from Q2 2023. Tesla's Q1 2024 deliveries also suffered a big drop year-over-year. This is the worst on record for Tesla. At the start of the pandemic, they only suffered one quarterly drop in deliveries.
Negative catalysts for Tesla are its robotaxi plans and Q3 deliveries. The Tesla Semi was unveiled in 2017, but it was only on the roads in 2022. So even if the robotaxi is unveiled in Aug, it may only be available 5 or more years later. Presently, Tesla EVs don't even come close to a robotaxi.
Q3 2024 deliveries may decline year- over-year again, making it an unprecedented 3 quarters of successive declines. These may put the brakes on the rally.
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bullrider_21 OP : A stock always moves from over-pessimistic to over-optimistic and vice versa. It doesn't have to reverse when the RSI is 70. It can be very overbought and RSI rises to the 90s.
152343683 bullrider_21 OP : I really enjoyed reading your comments. What is the best price to buy when Tesla falls?
bullrider_21 OP 152343683 : Glad you enjoyed. Maybe you can buy around the MA20 of 225.
bullrider_21 OP : Trump's shooting is good for his popularity and increased his chances of becoming president. Musk donated money to Trump's campaign. If Trump wins, Musk may serve in his administration. Another excuse for Tesla to rally.
152343683 bullrider_21 OP : Thank you so much! I own Tesla for the long term. It has dropped so much today. What is the best price to increase my position now? Thank you!
bullrider_21 OP 152343683 : np. Support is around 170-175.