TSLA has pulled back to a historically bullish trendline
Wall Street has been keeping an eye on Tesla Inc (NASDAQ:TSLA) since President Donald Trump named CEO Elon Musk to co-lead his new Department of Government Efficiency (DOGE), a taskforce aimed at reducing federal spending. Price updates dinged Tesla stock last month, and at last check they are down 0.9% to trade at $358.26 today -- on track for their fourth-straight drop and fresh off their sixth weekly loss in seven. The good news is this pullback has TSLA testing a historically bullish trendline.
Tesla's pullback has placed its 80-day moving average, which is a historically bullish trendline. According to Schaeffer's Senior Quantitative Analyst Rocky White, the equity has come within striking distance of this moving average after a prolonged period above it (defined by White as 80% of the time over the past two months and eight of the last 10 trading days) five times over the last three years. The stock was higher one month later after 60% of these signals, averaging a 5.3% gain.
A shift in analyst sentiment could push the shares even higher, as 24 of of the 38 firms in question carry a tepid "hold" or worse rating. Additionally, the 12-month consensus target price of $334.54 is a already a 6.5% discount to current levels.
Options look like a solid strategy when weighing in on TSLA. This is per its Schaeffer's Volatility Index (SVI) of 48% that sits in the 22nd percentile of its annual range, meaning options traders are pricing in low volatility expectations.