We made the decision to purchase Tesla (TSLA) at the opening price on Monday, February 10th, 2025, at $356.21. This decision was aligned with our ongoing strategy of identifying stocks with strong technical signals. As discussed in prior blog posts, particularly regarding volatility, momentum, and relative strength (see previous weeks at TPOW archive), TSLA had been a stock we were closely monitoring. At the time of purchase, TSLA maintained a strong position, with a Relative Strength (SCTR) ranking above 90, signaling that it was in the green zone and had strong momentum.
Rolling Over TPOW – Looking Ahead to Next Week
While rolling over our TPOW pick, TSLA, to the next week isn’t a formal rule within the TPOW strategy, it aligns with our ongoing approach of adapting to market conditions. Given the stock’s continued performance and its technical signals, we’ve decided to maintain our position for the time being. This decision is based on the stock’s potential to recover its momentum, despite the recent slip in its STR ranking. As always, we’ll continue to monitor TSLA closely and make adjustments as necessary, staying flexible in our strategy to maximize opportunities.
Volatility and Market Movement
The volatility this week can be partly attributed to Tesla’s recent sales slowdown in Europe, which some analysts believe may be linked to Elon Musk’s political involvement. His public political statements and actions could be influencing Tesla’s brand perception, particularly in regions with more politically sensitive markets. Despite these concerns, TSLA has shown resilience, maintaining its overall bullish trend in the face of market fluctuations. However, the SCTR ranking for TSLA slipped to 88 this week, indicating some weakness in the stock relative to its past performance. This drop suggests that while TSLA is still performing well, it is no longer in the green zone, and we will need to monitor its performance closely moving forward.
