Tesla just announced it is going to do a 5:1 split which has now propelled the stock 6% in after-hours. Even though this really doesn't matter, it has been seen as a positive for retail investors to buy more shares at what they consider a more affordable price (even though it has the same valuation).
Tesla was forming a bull-flag prior to this news, was trading at the bottom of the bollinger bands, has RSI that is not overbought or oversold, and could have momentum on the MACD start to flip positive again. Retail investors love the EV market, and honestly for good reason. There is massive potential for electric vehicles, but that doesn't mean these stocks are not overvalued because lets face it, they are all are right now.
With that said, I think this will trigger Teslas final impulse up to the $2000 mark (divided by 5 would be $400 after August 31st split). Although, I am not very confident in consumer spending so I can't say this is a long term hold at this price. I think a long-term pullback will follow this rally.
As always, I am not a financial advisor and this is not financial advice. Do your own research and formulate your own theories. Good Luck!
Tesla was forming a bull-flag prior to this news, was trading at the bottom of the bollinger bands, has RSI that is not overbought or oversold, and could have momentum on the MACD start to flip positive again. Retail investors love the EV market, and honestly for good reason. There is massive potential for electric vehicles, but that doesn't mean these stocks are not overvalued because lets face it, they are all are right now.
With that said, I think this will trigger Teslas final impulse up to the $2000 mark (divided by 5 would be $400 after August 31st split). Although, I am not very confident in consumer spending so I can't say this is a long term hold at this price. I think a long-term pullback will follow this rally.
As always, I am not a financial advisor and this is not financial advice. Do your own research and formulate your own theories. Good Luck!