Tesla Coin is kinda a thing and I think it’s a big deal. $TSLA – April 12, 2021TSLA AMZN AAPL SQ
This is Scott with your Chart of the Day. I want to take a look at Tesla ( NASDAQ: TSLA ) and talk about Tesla ( NASDAQ: TSLA ). There was some news from a crypto exchange today called Binance. What Binance did is they announced that they would allow users to buy tokenized shares of Tesla ( NASDAQ: TSLA ) on their crypto exchange.
I think this is really cool and could be kind of a big deal. As you know, on some exchanges in the US you can already buy fractionalized shares, this is very similar. So if you are not familiar with crypto you can just think of it that way. I think this could be the beginning of something big. Binance is one of the biggest exchanges in the world. And this could potentially open up the world to buying more Tesla ( NASDAQ: TSLA ) shares in this case.
I don’t know what this would mean for weekend trading, but essentially, if you are a crypto trader you could then turn your crypto into one of their BUSD tokens and then use that BUSD token as a way to buy Tesla ( NASDAQ: TSLA ) shares. It is not a derivative, it’s not a synthetic, it is an actual tokenized representation of a real share that is being held in your name.
That, in addition to how this chart is looking, I think makes Tesla ( NASDAQ: TSLA ) a pretty exciting stock right now. Here, technically, we can see that Tesla ( NASDAQ: TSLA ) is below its 50-day moving average but has some pretty nice and tight price action the last couple of days. We just kind of came out of this downward sloping trendline today and did it on pretty decent volume. With that, we are just kind of hovering right under its 50-day moving average.
Now, some of the other big FANG stocks like Amazon ( NASDAQ: AMZN ) had a nice move off of their 50-moving average; it’s an institutional moving average that a lot of major players look at. As soon as that stock got above its 50-day we had a nice little run to the upside. Apple ( NASDAQ: AAPL ), the same kind of thing, above the 50-day, a nice little pop. Square ( NYSE: SQ ), above the 50-day, a nice little pop. You see what I am getting at.
We are just kind of under that 50-day right now coming into a pretty important zone for this stock. If I line up some clearly defined levels of resistance we can see that this kind of area here around 707.00, it kind of stalled out there recently. And then we have this area right here right around 720.00-718.00.
If we can get above and stay above the 50-day moving average and do it on volume here on Tesla ( NASDAQ: TSLA ), I think that this could be a stock worth purchasing. You then, probably, want to have a stop-loss level at around this 660.00 area. That would be kind of a 10 percent initial stop. But like I said, the probability of it being able to get above and then hold above its 50-day moving average could lead to a nice little run to the upside.
So the chart pattern in addition to this news with Binance I think makes Tesla ( NASDAQ: TSLA ) pretty compelling right now. And it’s another example for crypto trying to drag the rest of the financial world kicking and screaming into the future, kind of like what Tesla ( NASDAQ: TSLA ) is doing with electric cars. So I would definitely recommend setting some alerts at these key levels of resistance and watch for moves through coming on higher than average volume.