Technology Slant:

There is a saying that goes something along the lines of you are either becoming a technology company, you are a technology company or you are being left behind. TSLA is categorized as a consumer discretionary play, but one has to believe it is a technology name to some degree. It did buy Solar City (which was a renewable energy company, whose group is classified as technology), but let’s get down to what really matters to me in the PRICE action. Did it benefit from its “rivals” action on Wednesday jumping 5% as RIVN added 24% on Volkswagen news (TSLA is down 20% YTD as RIVN is off by 38%)? Perhaps, but this has been rounding out a bottoming pattern now and it has been acting well since the week ending 4/24 jumped more than 14% (bullish piercing line too) and this week heading into Friday is up almost 8%, solid relative strength with the XLY up 1% and the XLK lower by the same amount. It looks like the fierce downtrend that began 11 months ago with the WEEKLY bearish engulfing candle the week ending 7/21/23 falling 7.6% at the very round 300 number is now in the rearview mirror, pun intended. Now it has to deal with the familiar round 200 figure but look for this to accelerate if that is taken out to the upside Friday.

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