Above is a daily chart of TSLA, and in the lower pane I have the SPY plotted for comparison. The very first thing that jumps out at me is the clear divergence between the two. Over the past ten days, the SPY has been trending lower, making new lows along the way, while TSLA has been doing the exact opposite, grinding higher. That’s classic relative strength, and it’s something I always pay close attention to. When the broader market is under pressure but an individual stock refuses to break down, it tells me demand is present beneath the surface. Buyers are stepping in, and they’re doing so with conviction.
To me, relative strength isn’t just about outperforming on a percentage basis. It’s about behavior. When the market is weak and a stock won’t follow it lower, that’s information. In TSLA’s case, the stock has absorbed selling pressure from the broader tape and still managed to push higher. That suggests institutions may be accumulating shares, or at the very least, supply is being absorbed.
Adding to my interest is the fact that TSLA has now printed back to back inside days. The daily range is narrowing, volatility is contracting, and price is coiling. Inside days often act like a pause before the next move, and when they show up alongside relative strength, I pay even closer attention. This kind of compression can store energy, setting the stage for an expansion move.
The level I’m watching is the high of the mother candle at 495.28. A decisive break above that level could trigger a breakout and potentially carry TSLA toward the psychologically important $500 area. Whether or not that move materializes immediately, TSLA is clearly acting better than the market, and for me, that alone makes it a stock worth keeping on my radar.
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