Tesla Charges Up For A Move As Big Tech Earnings Kick Off: The Bull, Bear Case

Tesla, Inc TSLA was trading higher Monday morning ahead of big tech earnings kicking off with Netflix reporting on Tuesday and Tesla on Wednesday.

Tesla is expected to print earnings of 86 cents per share on revenues of $23.59 billion. Last quarter, the EV giant beat on both the top and bottom line and the stock rallied over 10% the day following the print.

Two analysts weighed in on the stock on Monday. Wedbush analyst Daniel Ives reiterated an Outperform rating and maintained a $225 price target. Barclays analyst Raimo Lenschow maintained an Overweight rating and lowered the price target from $275 to $230. Read more here...

The price targets suggest over 20% upside for Tesla.

From a technical analysis perspective, Tesla looks set to choose a direction over the next few days, which is likely to take place following the company’s earnings print.

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The Tesla Chart: Tesla printed a double inside bar pattern on Thursday and Friday, with both days’ trading ranges taking place within Wednesday’s range. The pattern is neutral because Tesla has been trading mostly sideways since April 5, but traders can watch for the stock to break up or down from the pattern on higher-than-average volume to gauge future direction.

• On April 10, Tesla’s eight-day exponential moving average (EMA) crossed under the 21-day EMA, which is bearish. If Tesla breaks up from Wednesday’s trading range, the stock will regain both indicators, which would give bullish traders more confidence going forward.
• If Tesla breaks down from the double inside bar pattern, the stock will print a lower low, which will cause the downtrend into which the stock entered March 31 to continue.
• Tesla has resistance above at $190.41 and $200.51 and support below at $177.59 and $166.71.

Photo courtesy of Tesla.