New Sheriff in Town:
Or did TSLA just make a comeback? Its PRICE action should make everyone stand up and pay attention, even with today’s later selloff. Comparing it to former best-of-breed RACE one can see why TSLA is now calling the shots in the auto space. Its daily chart below shows the bull flag breakout which carries a measured move higher of more than 100 handles. Regarding other best-in-breed automobile plays GM must be in the conversation. It is not as flashy (we spoke about it here last month), but it hit the round 60 number Monday which was the measured move from the breakout above the bullish ascending triangle. It is now crushing F which is now 23% off its most recent 52-week highs as GM is 2% off its annual peak. An old leader in TM may be looking to drive higher in 2025, pun intended, as it has recorded a very pedestrian 2024. This name looks ready to make a big move suggested by the tautness of the Bollinger Bands which are as tight as they have been in at least 6 months. The move, which should be powerful, can go either way but above 170 remain constructive.