Thursday's Market Minute: Tesla Beats Earnings Estimates After Upside Breakout

Tesla (TSLA) shares are up more than 9% in premarket trading after reporting earnings yesterday afternoon. The automaker reported adjusted earnings of $1.19 per share on revenue of $24.3 billion versus estimates of $1.13 per share and $24.1 billion from Refinitiv.
Shares have been trending upward to the tune of about 41% as of yesterday’s close, rising up after stabilizing just below the 102 level in its yearly lows. However, it’s also down more than 62% since its yearly highs as of yesterday’s close as well, so it’s important to keep that in mind as well despite the recent gains. TSLA powered through the confluence of a downward sloping trendline beginning from the September highs as well as the 21-day Exponential Moving Average which both came in around the 130 level. Momentum also looks strong, as the Relative Strength Index (RSI) moved above its 50 midline at the same time price was breaking out. This helps lend some confirmation to the move and suggests momentum is back in the hands of the bulls.
There are some key price levels to watch when the market opens. Look to the 21-day EMA for support now that price has broken above it, which is around 134. In terms of resistance, the 160-163 zone represents some old highs from December as well as the 63-day EMA.

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