Tesla leads Nasdaq to record highs

Nasdaq is eyeing $11 000 as Tesla has just passed $1 500. Do they both still have the upside potential?

Definitely, yes. The tech industry is the best-performing sector even amid the coronavirus pandemic. It’s widely expected to keep rallying further. Trading tech stocks is a win-win strategy a priori. Moreover, if you invest in tech indices such as Nasdaq, you will also minimize your risks, as well. Nevertheless, while single stocks may be more profitable than indices, they can be riskier. It’s up to you, what to choose.

Let’s talk about Tesla, at first. It has managed to surprise investors again. It surged to the new record high at $1 500. Opinions of investors divided. Some believe Tesla will increase more, as it has already become the most valuable automaker. It beat all estimates on car sales with 90 650 deliveries. Also, if the company shows the fourth profitable quarter, it will be included into the prestigious S&P 500 index. The earnings report will be released on July 22. It will really one of the most important days for Tesla. Don’t miss out as it will open great opportunities for traders.

At the same time, others make bets against the tech giant. According to the S3 Partners group, the total sum of short positions is 20 billion dollars. There are people, who think that Tesla is overbought. Those ideas always have been in the Tesla history, but look at where is the company now and all doubts will be gone.

Today Tesla has marked the largest intraday surge. It’s moving upward to $1 550. The current risk-on sentiment has just added additional tailwind to the stock. Support levels are at the low of July 8 at $1 365 and at the key psychological mark at $1 200.

As for Nasdaq, it has been trading in an ascending channel for over two weeks. The long term trend is upward, as well. The stock index is climbing towards the $11 000 level. Support levels are $10 875, $10 680 and $10 515 on the 4-hour chart.

Nasdaq is traded as CFD futures contract in MT4 and MT5. You need to choose NASDAQ-20U in order to open a position.

TRADE NOW

Author: FBS Analyst Team

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