G'day folks and welcome to another trading day with your friendly, neighbourhood CMC Market Analyst!
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Trading Idea of the Day
NYSE:TSLA - Tesla Inc - BULLISH BIAS (long term)
- Key levels on the chart - consider taking trades from key support/resistance zones.
- After Tesla's stock split, the down-trending stock has continued to decline since peaking at the start of 2022.
- A high-interest rate environment and an upcoming economic recession has been hampering the company's future cash flows which affects its present value, therefore affecting its stock price.
- Being one of the most traded stocks, this presents opportunities for both short-term traders and long-term investors and opportunity to potentially short the stock in the near term, but look for potential buying opportunities in the long term, depending on your view.
This week, we also have Tesla's earnings Q3 report due which will highlight how the company fared in Q3 and what their forward guidance will be for Q4 and beyond, presenting any challenges and how the Tesla boss aims to navigate through this uncertain environment.
On a positive note, Tesla's sales in China have continued to increase significantly, despite China's current uncertain economic situation, hitting record levels in Shanghai after its factory upgrade (Reuters)
Given we're near a key support level on the daily chart, there's a possibility we may see some short covering to push the price back higher before continuing to sell back down. If earnings and more importantly forward guidance is poor, we could see a break of this key support zone around $200, where price can retest that decending trendline.
ASX & Economic Key Events
ASX Key Events Calendar (TODAY)
Economic Key Events (TODAY)
Economic Key Events (YESTERDAY)
OPTO For Investors Research
Article of the Day: Apple and Spotify shares mixed after TikTok’s music expansion
Podcast of the Day: Discipline Funds CIO Cullen Roche on finding opportunities in a bear market
APAC Daily Report
Click here to access our daily APAC report, prepared by my fellow market analyst @TinaTeng_CMC
Market Snapshot & Highlights as of 8am AEST
EXPECTATIONS: Energy LOWER (lower oil) & Materials LOWER on overall commodity prices.
Global Markets Headlines
- Xi warns against foreign interference in Taiwan, says China will ‘never promise to renounce’ force (CNBC)
- China’s Xi downplays need for rapid growth, proclaims Covid achievements (CNBC)
- British government performs major U-turn on tax cuts including change of chancellor. But markets are far from convinced (CNBC)
- Meta documents show main metaverse is losing users and falling short of goals, report says (CNBC)
- Sony and Honda plan to start U.S. deliveries of their electric vehicle in 2026 (CNBC)
American Executives in Limbo at Chinese Chip Companies After U.S. Ban (WSJ)
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)
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