Tech Stocks Boosted by Powell
Shares in Tesla are trading higher ahead of the open today. The stock is benefiting from a combination of factors currently. Dovish comments from Fed chairman Powell on Friday have fuelled a sharp repricing of US rates with the market now projecting a lengthy pause through to November at which point pricing suggests a rate cut is expected. Given the reversal in Fed expectations on the back of Powell’s comments, stocks have received fresh bullish impetus this week. Tech stocks are among those expected to benefit most with Tesla stock now up around 20% off the April lows as Musk’s company continue to claw back ground following the correction lower from YTD highs over recent months.
Cybertruck Details Add Lift
Tesla stock is also benefiting from the latest update regarding the hotly anticipated cyber-truck. Musk detailed that the radically new design of the car meant devising a whole new set of manufacturing techniques to facilitate the build. Looking ahead, Musk noted plans to begin delivering the vehicles later this year with production targets set at around 250k units initially.
Technical Views
Tesla
The latest test of the corrective bear channel lows has seen Tesla stock bouncing firmly. Tesla is now trading back above the 170.22 level and while above here, the focus Is on a further push higher. The next hurdle for bulls will be a test of the bear channel highs ahead of bigger resistance at 207.71 with the longer term bear trend line in that area also.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.