"Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company's stock because of "technicals and sentiment," believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business. "I think from a trading perspective, it looks very interesting," Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level."
"He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month. With that being said, he believes the consensus for Q3 deliveries is "probably low," as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter."
Short-term bullish signals emerged for Tesla based on technical indicators and improving market sentiment. The stock is holding its 200-day moving average and sustaining against resistance, indicating trading strength. A rally could continue into quarter-end, potentially aided by the $7,500 electric vehicle tax credit expiring at month's end. Consensus estimates for Q3 deliveries may be too low, raising the possibility of higher reported numbers on October 1 or 2. Tesla shares have risen over five percent today and more than fourteen percent over the past month amid these developments.
Read at TESLARATI
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