MARKET MOVERS Thursday, August 6, 2020 Technical Assessment Company Ticker Price Support Resistance Intermediate-Term: Bullish Tesla TSLA 1485.02 1370 NM Long-Term: Bullish Tesla makes and sells electric vehicles, and energy generation and The S&P 500 is finally breaking free from its eight-week storage systems. First-quarter revenue increased 32% to $5.985 bullish consolidation, and with Wednesday’s gains, filled the billion. Auto division revenue improved 38% to $5.132 billion. gap from February 24 that ran up to 3,328. The very last piece Services and Other revenue rose to $560 million from $493 million, of resistance is from the February 19 all-time high (ATH) at reflecting higher sales of used Tesla vehicles. 3,386. The Nasdaq and Nasdaq 100 have already moved to ATHs. The MDY is approaching its prior high from June 8 Tesla completed a bullish cup-with-handle (C&H) formation on June while the IWM surpassed its June 8 high. As we said in July, 30 on a nice pickup in volume. Based on the completed C&H, the the advance/decline lines of the major indices either are near shares could see a measured move well above the $1,500 level. or at ATHs as breadth continues to lead price. Following the breakout, the shares ran up to almost $1,800 on July The weekly McClellan Summation Index (a measure of 13. Since then, it appears the stock is tracing out a bull flag, finding breadth) has recovered from an extremely oversold level near support from the 21-day exponential moving average. According to -1200 to +1062. That is the first intermediate- to long-term buy Investors.com, TSLA has high Composite, Timeliness, Relative signal since January 2019. It took four months in late Strength (RS), Group RS, and Accumulation ratings. 2008/2009 to go from -1600 to +800 and a little over a month from the late-December 2018 bottom. The current buy signal Chart support comes in at $1370 and we would put a stop-loss right took about 2.5 months. below there. We would take profits in the $1800 area. The percent of "500" stocks above their 50-day average has +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ dropped to 66% from an historic 98%. At the start of every run since 2009, this measure went to 90%+. Going back to '09, the Boeing BA 174.28 153 234 percent above their 200-day average recovered over 45% and then 60% in two to three months. We are back up to 66% from Boeing manufactures commercial jetliners and military aircraft as a recent 34%. well as rotorcraft, electronic and defense systems, missiles, satellites, The new NYSE high/low AD line remains above its 50-day launch vehicles, and advanced information and communication average on a buy signal, and is widening the distance from the systems. 50-day. This reverses the early March sell signal. The weekly advance/decline of NYSE volume remains bullish over the 65- BA is a technical turnaround play after a massive decline to $89 in day exponential (EMA) average. Both the weekly 16/39 and March from $446 in March 2019. The stock broke out of a bullish 17/43 EMA crossover systems remain bullish following their ABC formation in early June. The shares ran all the way to $234 in March bear crosses. (Mark Arbeter, CMT) just four days on a huge pickup in volume. Since then, the stock has Strengthening Sectors: traced out a bullish wedge back to weekly chart support. The positive thing about the chart is that there is little resistance of any kind and, Technology, Consumer Discretionary therefore, a lot of room to run. The first is from the June high at Weakening Sectors: $234, and then the declining 200-day at $241. Above there, the first Real Estate, Utilities real overhead supply is $300+. According to Investors.com, BA has a high Accumulation rating. Recent Picks: TECH, AAL, ERIC, EA, JBLU, CENT, NDAQ, NLOK, PCAR, We would put a stop-loss just under chart support at $153. We would JPM, KBH, GOLD, PTON, THO, LEN, DAL, CMI, AMD, take profits in the $200 area, with the potential for larger gains in PANW, FDX, APD, PGR, DHI, CARR, CRL, HA, JPM, UNH, 2020. LULU, BABA, PYPL, NVDA, TECH, LLY, CMG +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ INDEX PRICE SUPP RESIS NASD 10998 8600 11000 NYSE 12732 11500 13600 S&P 500 3328 2960 3386 Investing in stocks involves risks that may be exacerbated by market and/or price volatility. The stocks in this report have exhibited recent volatility and may continue to do so in the near-term, and thus may be riskier relative to the market as a whole. Please see disclaimer on page 2. A R G U S R E S E A R C H C O M P A N Y • 6 1 B R O A D W A Y • N E W Y O R K, N. Y. 1 0 0 0 6 Argus Research Co. 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