Tesla (TSLA) Shares Jump Approximately 22% in a Single Day
Tesla was among the standout performers in the stock market rally that followed President Trumps decision to delay, by 90 days, the implementation of new international trade tariffs with the notable exception of China. According to the charts, Tesla (TSLA) shares surged by approximately 22%.
Why Did TSLA Shares Soar?
Some insight comes from Cathie Wood, CEO of asset management firm ARK Invest.
In an interview with Barrons on Wednesday, she noted the following:
Tesla plans to launch a new, more affordable vehicle this quarter, likely priced at around $30,000 roughly half the cost of the base Model Y.
The upcoming release of Teslas robotaxi service could also lower the need for large upfront vehicle purchases, offering consumers a more economical alternative.
Tesla sources more components from North America than most other US carmakers, meaning it is less exposed to tariff-related costs.
And theres another reason TSLA may have jumped one that can be found in the chart.
Technical Analysis of TSLA
Take note: the March and April lows (marked with arrows) are both around the $220 level. Meanwhile, the S&P 500 (US SPX 500 mini on FXOpen) posted a significantly lower low in April compared to March. This suggests that, in early April, TSLA was outperforming the broader market. Why?
One possible explanation is that there has been and perhaps still is a strong accumulation interest in TSLA. Buyers may have been quietly scooping up available shares amid recession fears. When yesterdays news suddenly shifted market sentiment, the spring uncoiled, catapulting TSLAs share price upward.
However, the overall downtrend remains intact. If bullish momentum continues, the price may encounter resistance around the psychologically significant $300 level which coincides with the upper boundary of the downward channel.
Read more: https://fxopen.com/blog/en/oa-tesla-tsla-shares-jump-approximately-22-in-a-single-day/
Text source: Forex Trading Blog
