Tesla stock trades near a trendline that has acted as a stepping stone in the past
Tesla Inc (NASDAQ: TSLA) recently made headlines thanks to CEO Elon Musk’s comments on cryptocurrencies like Dogecoin and Bitcoin. Following the announcement, the company would no longer accept Bitcoin as a form of payment on its cars as both have concerns about the environmental impact of its mining operations TSLA and Bitcoin Withdrawn. Now Tesla is back in the news after Musk said today the company did not sell crypto despite the above concerns.
On the last review, Tesla stock fell 3.8% to $ 567.23, adding to its 19% year-to-date deficit. Given the 10-day moving average, TSLA is on track to hit its fourth straight closing price below $ 600 – something the stock has avoided since November 2020. Despite the fluctuating performance on the charts of late, investors shouldn’t swear by the stock just now as it has retreated to another trendline with historically bullish implications.
Specifically, after trading above the trendline for over a year, TSLA has achieved one standard deviation from its 200-day moving average. The stock has seen a similar decline over the past three years, returning an impressive 73.2% a month later in this case.
A short press still looks like it could give the electric car maker a boost. Short rates rose 19.2% over the most recent reporting period, and the 41.38 million shares sold accounted for a whopping 23.1% of the stock’s available free float. And put-buy is still all the rage. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) show the security with a 10-day put / call volume ratio of 1.00. This is higher than any other metric in its annual range, meaning that puts are being bought at the fastest rate in 12 months.
In addition, options traders are currently evaluating relatively low volatility expectations according to the Schaeffer’s Volatility Index (SVI) of 57%, which is above 9% of all other annual values. In addition, TSLA’s Schaeffer Volatility Scorecard (SVS) is 93 out of 100, which means that equity has tended to exceed these expectations in the past year.