Tesla, Inc. (TSLA) is not just a maker of luxury electric automobiles – it is also a solar energy company. Investors will be focusing on offerings in the trucking industry, with vehicles ranging from pickup trucks to large multi-wheeled freight carriers.
The stock closed 2017 at $311.35, up 45.7% for the year and in bull market territory at 47.6% above its 52-week low of $210.96 set on Jan. 3, 2017. The stock set its all-time intraday high of $389.61 on Sept. 18 and is in bear market territory since then, down 20.1% since this high. (See also: Tesla Could Jump 70% on Model 3 Success: Analysts.)
Here's how the numbers worked in 2017.
Tesla shares closed 2016 at $213.69, and my annual risky level for 2017 was $250.95. This level quickly became an annual pivot first tested on Jan. 24, 2017. Given stability around this level, investors were justified to buy at $250.95 on March 22. At mid-year, the stock closed at $361.61, and my semiannual value level of $313.87 was tested as a buy level on July 6. The stock set its all-time intraday high of $389.61 on Sept. 18. Then, the semiannual pivot of $313.87 was violated to the downside on Nov. 2, and it has been a magnet since then, including on the last day of 2017.
The daily chart for Tesla
Tesla stock has been below a "death cross" since Dec. 13, when it closed at $339.03. A "death cross" occurs when the 50-day simple moving average falls below the 200-day simple moving average and indicates that lower prices lie ahead. The horizontal lines show the annual and semiannual pivots of $250.95 and $313.87, respectively.
The weekly chart for Tesla
The weekly chart for Tesla is neutral, with the stock below its five-week modified moving average of $322.12. The stock is well above its 200-week simple moving average at $246.35, which is also the "reversion to the mean," last tested during the week of Dec. 16, 2016, when the average was $196.77. The 12 x 3 x 3 weekly slow stochastic reading ended 2017 rising to 38.44, up from 33.47 on Dec. 22.
Given these charts and analysis, Tesla begins 2018 in a neutral trading range between my semiannual pivot at $296.08 and my annual risky level of $378.49, suggesting that the stock will not see a new high this year. (For more, see: EV Credit a Boost for GM, Nissan—Not Tesla: Morgan.)