- The US session has begun with indices making record highs
- US500 closing in on 2600 level
- Tesla gains despite Saudi Prince Alwaleed “too exuberant comments”
The US session has begun in a bullish mood with the Wall Street open seeing record highs as the positive sentiment from Abe’s election victory over the weekend has been felt in North America. The US500 gapped higher on the open last night and after back and filling during the morning session the market could now be set for more gains.
The US500 ended last week at 2572.5 – its highest ever closing level – and has moved above there today making an all-time high of 2577. These two levels could be wroth keeping an eye on going forward with the former seen as possible support and the latter potential resistance. An expansion outside of this range could well be seen as a sign of the next move with the price now less than 1% from the 2600 handle.
In terms of individual stocks, Tesla has been in the headlines after some less than flattering comments from Saudi Prince Alwaleed bin Talal. The billionaire investor was speaking on CNBC earlier stating that electric cars will eventually hurt the demand for oil. “All other companies are going into the Tesla path of electric cars and even autonomous care.. So 5, 10, 20 years from now there is no doubt the dependence on oil will have to diminish.”
Tesla has enjoyed a strong run higher in recent years but there are some signs that suggest the uptrend could be under threat. Source: xStation
When asked further on Tesla Alwaleed said “maybe some people believe the value is right. It’s not for me to enter at that price. It’s too exuberant for me right now.” Tesla has enjoyed an incredible rise in recent years but there are some signs that the uptrend has struggled in recent months. After making an all-time high of 387 back in June the market dropped sharply, falling some 20%. Since then price has recovered but failed to breach the prior higher at 387, forming a double top. The current price is now almost exactly slap bang in the middle of these two points at 347 and it has also slipped below the 50 day SMA (Yellow line).
Elsewhere the Saudi Prince also commented on Bitcoin. He stated that it was “Enron in the making” and said he didn’t believe in the product. He predicts that it will implode. We earlier noted how Bitcoin had smashed through the $6000 barrier over the weekend but the market is lower today, slipping back below the $5800 level to trade down by almost 3% on the day. There is in fact selling in all 5 crypto markets with Ripple the worst hit and down by more than 5% to trade below 0.20.