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Tesla Building A Large Base And May Be Ready To Resume Another Strong Uptrend

Tesla was undoubtedly the darling and leader of the 2020 bull market. From May 2020 until early 2021, it more than tripled as it headed higher week after week and month after month. Since January, it has been building a large, multi-month base. These type of bases often tire out buyers as their frustrations start to mount. What intrigues me about Tesla here is that it is no longer the talk of the town. No one seems to care about it anymore whereas everyone had to own it in late 2020. Huge bases like this coupled with a lack of media coverage often offer enormous opportunities.

At its' current levels, TSLA is shaping up with a fantastic risk to reward ratio, as the 10-week and 40-week lines lie just below. Should Tesla emerge above recent resistance levels on strong volume, it could definitely resume a strong uptrend again. I've noticed over the past few weeks many of the "old guard" stocks from 2020 are starting to set up again. Amazon, one of the first stocks to emerge in April 2020, is now trading over $3,700 after breaking out from a huge multi-month base. Shopify and CrowdStrike are also sporting impressive charts. It is very possible that we might be seeing some rotation back into some of the monster winners of 2020. If that theme continues, it bodes well for Tesla, the true leader of last year's bull run.

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Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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