• 3 minutes e-car sales collapse
  • 7 minutes Energy Armageddon
  • 11 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 3 hours America Is Exceptional in Its Political Divide
  • 2 days Cummins showcases 15L fuel-agnostic engine platform; hydrogen, diesel, biogas 16 March 2023
  • 9 days Gazprom and Rosneft super result
  • 3 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Editorial Dept

Editorial Dept

More Info

Premium Content

Why Tesla Is A Buy Right Now

I am, as I have said here many times, a contrarian trader by both nature and training. I have been in and around markets for forty years and one of the first things I learned was that as useful as following momentum can be in intraday trading, the longer out you look, the more beneficial it is to go against conventional wisdom. That is why, even though it looks to be the worst possible time to buy TSLA, with the stock having just hit its lowest point in two years and seemingly in freefall, I am doing just that.

The chart certainly isn’t encouraging at first glance, with a dramatic downtrend resuming after a weak attempt at a rally. However, the recent drop took us to a level, marked by the blue line above, that held on dips last year and may well be a significant support level. The technical picture, therefore, is not as bad as a cursory glance might suggest. The fundamental situation is similar in the sense that the first impression is negative, but a deeper look suggests that things may be about to turn.

In a general sense, the Fed and other central banks around the world are squeezing hard, trying to combat inflation, and Jay Powell has said that he is prepared to risk a recession in the US to do that. The assumption to this point has been that he will have to do just that, and if he does, EVs will suffer. They are generally more expensive than the equivalent, gas-powered vehicle and are more appealing with high gas prices. A recession would curtail…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News