Tesla’s Post-Election Surge Could Hit a Roadblock

[Trading With Larry Benedict]( Tesla’s Post-Election Surge Could Hit a Roadblock By Larry Benedict, editor, Trading With Larry Benedict You could’ve easily mistaken Elon Musk as President-elect Donald Trump’s running mate during the election. Musk often appeared alongside Trump. He even took the stage on several occasions to rally voters. And following the elections, Musk’s political presence has remained on full display. He appeared ringside with Trump at a UFC fight and has reportedly been on calls with world leaders. Trump has even appointed Musk to head a new advisory body called the Department of Government Efficiency. Elon’s influence is growing, and Tesla’s share price reflects that. Musk still owns around 20% of Tesla, whose soaring stock has made Musk the world’s richest person in history with a net worth of $350 billion. But can Tesla shares keep up the momentum, or is a post-election pullback on deck? Let’s look past the news headlines and search the chart for clues… Recommended Link [This is What a Real Victim of Discrimination Looks like]( They’ve grown their earnings by 350%, their assets by 230% and their revenue by 100%. And yet, this company is only $10 a share. Porter Stansberry’s new documentary shows you what real discrimination looks like, and how you can use it to your advantage. [Check out to watch…]( -- Catching Up to the Magnificent 7 In 2021, Tesla (TSLA) featured prominently among the “Magnificent 7” stocks alongside majors like Nvidia (NVDA) and Microsoft (MSFT). But then TSLA shares hit a rough patch in 2022. The chart below compares TSLA to a couple of other Mag 7 stocks from the start of 2022 through the end of 2023. [chart] ([Click here to expand image]( Of the entire Mag 7, TSLA turned in the worst performance over that period with a loss of 29%. Top-performing Nvidia gained 68% over the same time frame. But this year, there’s been a major change in TSLA’s trend. TSLA started rallying in April. And those gains recently picked up more steam. Given Musk’s proximity to the incoming presidential administration, TSLA has gained 35% since the start of November. That’s significantly outpacing every other Mag 7 stock. But there’s a tough hurdle for TSLA shares ahead. At the same time, a new chart warning is emerging… Free Trading Resources Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Dual Resistance Patterns The rally in TSLA shares has brought the stock to a key level. TSLA is trading just below its prior highs around the $360 to $400 price zone. The stock tested that area on three occasions back in late 2021 and early 2022 before the stock fell in 2023. But this year’s resurgence has brought the stock back near this key resistance level. Plus, there’s another sign that a pullback could be in store before more upside. That’s a “negative momentum divergence” forming with the Relative Strength Index (RSI). The RSI measures underlying price momentum. You can use it to spot overbought and oversold levels on a stock. You can also use the RSI to spot a weakening trend. Look at the TSLA chart below. [chart] ([Click here to expand image]( TSLA has tested the $360 resistance level several times since last month (shown with the box). But the RSI in the bottom panel is starting to diverge. You can see that the RSI is making a lower high (dashed line) as TSLA has been testing $360 over the past couple of weeks. That doesn’t mean TSLA is about to crash. But it does show that the underlying momentum in the rally is weakening. Elon’s new role in Washington may ultimately push Tesla’s stock to new heights. But these signals suggest a pullback could be the next move. Happy Trading, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](