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It’s one of the market’s most notorious and contentious battleground stocks. But in the world of he said, she said arguments in today’s market, no stock comes close to what’s driving Tesla (NASDAQ:TSLA) stock traders into a frenzy.
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Let me explain.
Tesla is no stranger to controversy. Even Netflix (NASDAQ:NFLX) or a hotly contested Shopify (NYSE:SHOP) can’t hold a candle to the upstart EV auto manufacturer. But this month conditions have grown more heated.
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The escalation follows two very high profile and countering assertions, which fight for those who hate Tesla and those who love the company. And make no mistake, Tesla stock is going to run one of them over shortly.
In support of Tesla’s steadfast pessimists and the stock’s heavily shorted bear population, perversely enough, it was well-known consumer advocate Ralph Nader who declared shares need to be investigated.
Mr. Nader recently expressed that the U.S. Securities and Exchange Commission should protect investors and determine if any insider trading or possible market manipulation in Tesla’s share price occurred. Did someone forget to send Ralph the memo that Tesla stock rallied upwards of 125% at its best this year?
For the bulls, ARK Invest’s Catherine Wood, a long-time bull on Tesla, revised its longer-term price target on shares to $7,000 by 2024. And if their thesis really plays out as anticipated, the stock could trade above $15,000. The latest call comes after the firm’s research team performed a deep dive into TSLA stock’s gross margins, capital efficiency and the adoption of autonomous driving.
So, who are you going to believe? I’d advise that when it comes to Tesla stock right now, it’s best to leave those matters to the price chart.
Tesla Stock Daily Chart
Source: Charts by TradingView
Since last writing about Tesla stock in December and offering a bullish risk-adjusted entry, shares have rocketed higher. In fact, the discussed purchase looks almost conservative and safe in consideration of Tesla’s ensuing blast-off towards $1,000 over the past month. But I’d also say investors shouldn’t believe the bears and think TSLA is well past being able to be bought. It’s not.
Over the past several sessions Tesla has consolidated its gains following what some technicians will qualify as a blow-off topping pattern. I’m not so sure. What is observed with more authority is the reduced price volatility is taking the shape of a symmetrical triangle. And most often, these formations offer traders profitable continuation entries into a stock.