Tesla jumps to its highest level in 4 months amid bullish technical setup
- Shares of
Teslasurged as much as 4% on Tuesday to hit its highest level since April.
- The move higher came amid a bullish technical setup called a golden cross for the stock.
- Tesla's 50-day moving average is now at a higher level than its 200-day moving average.
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Tesla jumped as much as 4% on Tuesday to hit its highest level since April amid a bullish technical setup that signals more upside ahead.
A golden cross in Tesla's stock materialized after months of sideways action, with the 50-day moving average now above the 200-day moving average. The moving average crossover signal is widely followed by technical analysts and traders.
The lagging indicator can help alert traders to securities in the
This is the first time Tesla experienced a golden cross since November of 2019. After that bullish moving average cross, shares of Tesla soared about 1,400%. Tesla's stock successfully shook off a bearish death cross that materialized over the summer and led to mostly sideways action.
The recovery in Tesla's stock price comes despite an ongoing shortage in semiconductors that has hampered the auto supply chain. But solid quarterly earnings results from Tesla has helped investors shake off those concerns, and now anticipation is building that the company may benefit from renewed green energy subsidies from the Biden administration.
The bullish golden cross signal is one of many trading patterns that technical analysts employ to buy stocks. Meanwhile, the bearish death cross is one of many trading patterns that signals it may be time to sell.
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