Monday, shares of Tesla Inc. went up because the company’s stock chart showed its first bullish moving-average crossing signal in more than a year.
Yesterday, Tesla’s stock (TSLA 5.30%) fell 12.6%, the first time in three weeks that it had gone down. This morning, it went up 3.8%. It’s been six weeks since the last such streak stopped on January 26.
The worst day of the selloff was July 24, when shares fell 12.3% after Tesla reported a profit for the second quarter that was lower than expected and announced that its much-anticipated “robotaxi” event would not happen until October 10.
Many people use the stock’s TSLA 5.30% 50-day moving average to spot short-term trends. It went up from $204 on Friday to $205.07 on Monday. The 200-day moving average, which is a popular long-term trend dividing line, fell from $204.84 to $204.66.
This bullish crossing, which some people call a “golden cross,” is seen by many chart watchers as the point where a short-term bounce turns into an uptrend.
These crossovers aren’t meant to be market-timing signs because they’re easy to spot, but they can give you an idea of how long and how strong a recent trend has been.
A similar bearish crossing, called a “death cross,” showed up on February 1, almost six months before this “golden cross.” After the death cross showed up, the stock fell 24.8% until it hit a 15-month low of $142.05 on April 22.
Not long ago, the stock was moving 60.5% above that low point.
Once again, the stock hit its last golden cross on June 23, 2023. It then went up 14.3% more before reaching its highest point about three weeks later.
The one before that popped up on Aug. 30, 2021, and the stock soared 68.3% before peaking on Nov. 4, 2021.
Tesla’s stock has dropped 8.2% year to date, to make it the only member of the so-called Magnificent Seven technology giants to be down this year.
The tech-heavy Nasdaq-100 Index NDX0.73% has gained 14% this year, while the S&P 500 index SPX0.37% has advanced 14.8%.
