A Look At Tesla Stock As Investors Await Post-Labor Day Market Shift

Tesla, Inc TSLA was trading flat in the premarket on Tuesday after a volatile Friday caused the stock to gap up 1.41% when the market opened, only to run into sellers who dropped the stock down 3.86% intraday.

Retail traders who kept up with the market during the summer months are looking forward to opportunities that seasonally present themself after the Labor Day weekend, when big money often returns and companies begin to increase their news flow.

Tesla investors are anticipating an announcement on a new Gigafactory before year end, with some believing Quebec, Canada could offer a prime location.

The company recently posted a job for a high-volume recruiter in Montreal, with similar wording to what’s been posted to bring in recruiters at previous Gigafactory locations.

Quebec is rich in some major battery metals, such as lithium and graphite, and Canadian miners have been working to ramp up their exploration and mining activities to race into production.

On Thursday, a report from Electrek said Tesla had visited Nouveau Monde Graphite, Inc’s NMG mine and factory in Quebec. Nouveau Monde believes its Matawinie project may host the largest amount of graphite in North America.

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The Tesla Chart: Despite retail investors hoping the fall trading season turns the tides bullishly, Tesla has a lot of work to do in order to negate the downtrend its been trading in since Aug. 16. Tesla’s most recent lower high within the pattern was printed on Friday at $282.35 and the most recent lower low was formed at the $266.15 mark the day prior.

• On Aug. 29, Tesla broke down bearishly from a head-and-shoulder pattern on the daily chart, which caused the stock to continue lower within the downtrend. The measured move of the pattern break is about 10%, which indicates Tesla could call toward the $256 area.
• Tesla’s trading volume has been decreasing since July 21, which indicates investor interest has been slowly dropping lower. Decreasing volume is often followed by a surge in volume, which could help the stock choose a stronger direction over the days and weeks ahead. 
• Tesla is trading below the eight-day and 21-day exponential moving averages (EMA), with the eight-day EMA trending below the 21-day, which is bearish. On Thursday and Friday, Tesla tested support at the 50-day simple moving average and held above the level, which is a good sign for the bulls. Bullish traders would like to see the stock trade sideways for a period of time to run out of sellers before the next potential run higher.
• Tesla has resistance above at $271.71 and $285.83 and support below at $254.98 and $234.35.

Photo courtesy of Tesla.