09 Oct Technology Signaling A Pullback, Tesla Fills The Gap
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The Technology sector maybe gearing up for a short-term pullback, as measured by the Technology Select ETF ($XLK). Shares of the ETF have risen outside its trading channel. In the past, this has signaled a short-term pull-back in the group. We will need to continue to monitor this situation.
Tesla ($TSLA) is a playing a game of filling the gap, with the stock falling by nearly $9, or 2.5 percent, trading at around $348. The stock continues to trade on technicals, with algo’s apparently doing most of the work. The stock fell right to support and has managed to hold at $348 for the balance of the day.
From looking at the longer-term trends, the stock is trade right along its rising trend line dating back to early March, if the pattern continues to hold the stock should move back into its rising-triangle formation, and head towards $400.
Biotech shares are consolidating right below resistance at $343, as measured by the Nasdaq Biotech ETF ($IBB).The consolidation started around October 4, with a support right around the $339 level.
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The same pattern is currently occurring in shares of the SPDR S&P Biotech ETF ($XBI) as well.
Alphabet continues powering higher, getting closer to the $1,000 level. The move higher today, is coming on solid volume. Volume has started trending higher, of the past few sessions.
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Michael Kramer and the clients of Mott Capital own shares of Alphabet and Tesla
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Tags: Tesla, Alphabet, Technology, Biotech