Chart Pattern Suggests a Significant Move in Tesla (TSLA) Soon

An ascending channel has formed in the chart of Tesla Inc. (TSLA). When the stock moves out of this channel, a significant move is expected…

Tesla Inc. (TSLA) is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities.

With a first-mover advantage in the electric vehicles space, the company’s growth potential remains strong. It is seeing robust demand for both the Model 3 and Model Y. Plus, its Shanghai Gigafactory and aggressive expansion efforts bode well.

The company currently has a current ratio of 1.9, which means it has more than enough liquidity to handle short-term debt. In its most recently reported quarter, TSLA’s revenues grew 130.4%, though its earnings per share were negative. The company is expected to grow earnings 37% next year.

TSLA’s stock currently has a trailing P/E over 1,000 and a forward P/E of 169.49. The stock has shown positive near- and mid-term momentum. This has led to a Momentum Grade of B in our POWR Ratings system and is reflected in the chart below.

Take a look at the 1-year chart of TSLA below with my added notations…

See chart and continue reading at STOCKNEWS.com