Some people might wait for a double bottom at the 200DMA as confirmation to increase their long position.
What are the thoughts on a V shaped recovery versus a potential double bottom recovery?
I would as well like to look forward and focus on the future and ask how far a possible recovery might go.
Will we see prices in the mid $900 range soon, or might we even exceed that range quickly given the recent development progress at Tesla (GF Shanghai, Model Y and so on)?
I hope all are doing well.
Double bottom seems more likely than V-shaped IMO.
The coming earnings season (April-May) and the one after that (Q2's earnings in July/August) will determine market sentiment and Tesla will most likely (largely) follow along.
Personally I assume rising optimism from now until the end of June, as the pandemic could die down worldwide and the quarantines are dropped here and there.
Then starting July the market could panic again seeing the terrible Q2 earnings of many businesses. Also the dropped quarantines could create another surge in COVID19 cases, creating pessimism all around.
If we - by August/September get some optimism in the market again- I could see a reversal of the macro's.
For Tesla specifically, a lot will depend on news such as:
-their Q1 ER;
-the battery day (May/June?);
-the company day (recent tweets suggest this is not the same as battery day, who knows);
-their Q2 prodcution/deliveries and ER;
-further FSD news/releases.
(AND: Tesla's ER results relative to other automakers. If the market sees Tesla as one of the few leading car makers of the future, a drop of the market would not necessarily hurt TSLA as money could be flowing in from other OEM stocks)
I know we are in the TA thread, but the above is just an answer to your question. I hope we see +$1000 by end of year (we were so close!) and I still see a possibility for it, but who knows with these crazy times.
