Elon Musk’s Tesla (TSLA) posted a strong performance on Friday to finish they week 9% higher.
Shares were charged by recent moves from the central bank of China to stimulate the economy. That action also sparked a sharp rally in Chinese stocks like Alibaba (BABA) and NIO (NIO).
Investors have also turned a bullish eye on Tesla this week after analysts at Piper Sandler upped their price target to $310.
Investors would be wise to take note of the price upgrade.
Over the last two years, Tesla has gone from one of the most recommended stocks by Wall Street analysts to a “hold”. This means that the recent bullish activity is likely to result in upgrades to the stock, an incentive for even higher prices.
Tesla shares’ 50-day moving average is in the process of shifting into a bullish trend, indicating that momentum is shifting into a bullish phase.
In addition to the short-term outlook, Tesla stock shifted into a long-term bull market trend last month as the stock shifted above its long-term 20-month moving average.
The last similar shift happened in early 2020 ahead of a 500%+ move over the following year. It should be noted that this was just after the short bear market in 2020 after the Pandemic which heavily favored technology stocks.
Shares of Tesla are in a long-term bullish trend with a target of $350.
Shares of IBM (IBM) were relative outperformers for much of Friday’s trading.
The stock – which has been on a zero-volatility rally since June – dropped less than 1% while many of the AI industry names trading 2-5% lower.
IBM announced today that the company would not be replacing employees with AI. That headline dropped two days after reporting that the company would be cutting jobs.
The stock is trading just off all-time highs that were struck yesterday.
AI service stocks like Palantir (PLTR), Salesforce.com (CRM), and IBM have been showing relative strength against the AI hardware companies recently.
That strength is the result of companies adopting AI-based products offered by these names. The trend should continue as the value of AI is matriculated into the economy.
After its 30% rally, IBM could use a “healthy correction” as investors would likely turn cautious of the company if it were trading at its highs ahead of its earnings.
IBM is set to report its earnings on October 23.
For now, a short-term pullback to $210 would present a “buy the rumor” opportunity ahead of what should be a great fourth quarter for this AI service leader.
Bitcoin’s price finally looks ready for a breakout move.
The cryptocurrency has been locked in a trading range since the beginning of August. That range has kept Bitcoin trading between $55,000 and $65,000 for 57 days.
Over the last year, Bitcoin has become more sensitive to technical trading and “key” price support and resistance. This is due to the massive increase in investors that are now trading Bitcoin after the release of spot-priced ETFs earlier this year.
Bitcoin’s move above $65,000 will grab the attention of technical experts, drawing more buyers into the market over the next week.
Adding to the possible breakout is the “Silver Cross” pattern that Bitcoin just completed.
A Sliver Cross is formed when a stock’s – or Bitcoin in this case – 20-day moving average crosses above its 50-day moving average. The pattern suggest that positive momentum for the underlying is building.
Investors will want to watch for confirmation of the bullish move. That confirmation will be signaled by a cross above $67,500.
