Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Shares of Tesla, Inc (NASDAQ:TSLA) opened about 2% higher on Tuesday, after falling over 5% on Monday.
The electric vehicle giant has plunged 27% since April 25, when CEO Elon Musk announced he would purchase Twitter, Inc (NYSE:TWTR) for $54.20 per share. The deal shook Tesla investors, who worry Musk’s attention may become too divided between Tesla, Musk’s numerous other businesses and Twitter, an internet battleground that already appears to take up a good portion of the CEO’s time and energy.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The details of the purchase have also weighed on investors because $6.25 billion (originally $12.5 billion) of the financing was set to be funded through a margin loan backed by Musk’s stake in Tesla. Musk and his advisors at Morgan Stanley have been working to raise $6 billion from investors in order to negate the loan, however, according to a recent Reuters report.
The purchase may not come to fruition, at least at the current price, however, because Musk said at a Miami tech conference that he may attempt to renegotiate the deal. Musk has also taken to Twitter to complain about bots on the social media app, which Wedbush analyst Dan Ives believes Musk may be planning to use as a scapegoat to back out of the deal.
Although Tesla has been trading in a fairly consistent downtrend since April 4, the most recent action on the stock’s chart indicates traders and investors may be waiting on the sidelines for both technical reasons and for more clarity on Musk’s plans for Twitter and how it will potentially affect Tesla.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
The Tesla Chart: Tesla’s downtrend was negated on Monday, when the stock printed a higher low at the $719.09 mark, which was above the most recent lower low of $680 that was formed on May 12. On Tuesday, Tesla opened slightly higher and looked to be settling into an inside bar pattern on the daily chart, within a small tightening triangle pattern.
Tesla’s inside bar is neutral, because the stock has been trading mostly sideways for the past five trading days. Traders and investors can watch for a break up or down from Monday’s mother bar later on Tuesday or on Wednesday to take place on higher-than-average volume to gauge future direction.
If the triangle pattern is recognized, the break may come sooner than the break from the inside bar pattern, because Tesla’s trading range has been tightening and the stock is set to reach the apex of the pattern on Wednesday. If the triangle pattern is dominant, traders and investors can watch for increasing volume to come in on lower timeframes when the stock breaches the upper or lower trendline of the triangle.
When either pattern is combined with Tesla’s relative strength index (RSI), it appears most likely that Tesla will rise higher. Tesla’s RSI is currently measuring in at about 33%, which puts the stock near oversold territory.
Tesla has resistance above at $745.63 and $780.79 and support below at $720.95 and $700.
See Also: Elon Musk Says Number Of Twitter Bots As 'Unknowable As The Human Soul Basically'
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.