Tesla, Inc TSLA experienced a relatively stable trading day on Friday, fluctuating within a triangular pattern on the daily chart.
In stark contrast to the remarkable 57% surge seen in NVIDIA Corporation’s stock since the beginning of 2024, Tesla has witnessed a 22% decline. Comments by Jim Cramer comparing the visionaries behind Nvidia and Tesla have sparked conversations within investment circles.
Despite lagging behind its Magnificent Seven counterparts, Tesla is showing signs of a potential reversal as it trades within a triangle pattern and exhibits hidden bullish divergence.
Traders eyeing profits from a potential Tesla upswing may find single-stock ETFs to be a lucrative option.
Related Article: Tesla’s Model 3 Long-Range Receives Third Price Hike This Month
Trending: Market Optimism Leads Fidelity Manager to Shift Portfolio Away from Treasuries
Single Stock ETFs come with inherent risk due to the lack of diversification, making them volatile compared to other types of funds. It is crucial to treat single-stock ETFs as short-term trading instruments rather than long-term investments.
For traders bullish on Tesla, Direxion Daily TSLA Bull 1.5X Shares TSLL offers 150% leveraged returns linked to Tesla’s performance. Conversely, those bearish on Tesla can consider Direxion Daily TSLA Bear 1X Shares TSLS, which seeks daily returns equal to 100% of Tesla’s inverse performance.
It’s important to note that leveraged and/or inverse ETFs are designed for short-term trading strategies rather than long-term investments.
The Tesla Chart: Tesla has been consolidating within a triangle pattern since mid-February, showing signs of hidden bullish divergence as bullish momentum increases.
- For divergence to correct, Tesla will need to break out of the triangle into an uptrend, or momentum must decrease, leading to lower relative strength index (RSI) levels. Traders should watch for breakout or breakdown from the triangle pattern on high volume to gauge the future direction.
- Tesla recently filled a portion of an upper gap from January 25, signaling a potential upward movement in the future. However, an unfilled gap remains between $203.17 and $206.77.
- Bullish traders anticipate Tesla breaking out of the triangle pattern and filling the upper gap entirely. Conversely, bearish traders look for a breakdown on elevated volume, potentially indicating a new downtrend.
- Key resistance levels for Tesla lie at $200.51 and $213.13, with support levels at $190.41 and $177.59.
