Tesla Inc (NASDAQ:TSLA) will not be present today when President Joe Biden hosts an event with Ford Motors Co (NYSE:F), General Motors Co (NYSE:GM) and Stellantis NV (NYSE:STLA) to focus on a commitment that 50% of all vehicle sales are electric by 2030.
With Tesla being a 100% EV manufacturer, it’s likely not necessary its executives attend although CEO Elon Musk finds it odd.
The news that Tesla would not be included didn’t affect the stock and on Thursday shares were quiet as it continued to settle into a bull flag formation.
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The Tesla Chart: The pole of the bull flag pattern was created between July 29 and Aug. 2 when Tesla’s stock shot up almost 12%. The stock has spent the last three trading days digesting the move and has consolidated into a flag pattern.
The flag formation is also a tightening symmetrical triangle and, if recognized, the stock is set to break up or down from the pattern before the end of the trading session next Monday when Tesla will reach the apex.
The consolidation on Tesla’s stock is needed because the relative strength index (RSI) is registering just under 69%. If Tesla were to reach an RSI of 70% or above, it would be in overbought territory, which would be a sell signal for some technical traders.
Tesla is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending well above the 21-day, both of which are bullish indicators. Tesla is also trading above the 200-day simple moving average, which indicates overall sentiment in the stock is bullish. With all three moving averages curled north, it indicates Tesla’s stock may break up bullish from the flag and run higher.
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