Tesla Inc.’s stock rallied 3.7% in afternoon trade Monday, putting it on track to close above its widely-followed 200-day moving average for the first time in six weeks, and above its 50-day moving average for the first time in nine weeks. The 200-day MA is viewed by many chart watchers as a dividing line between short- and long-term trends, while the 50-day MA is seen by many as a short-term trend tracker. The stock’s move Monday likely comes a day before the 50-day MA crosses below the 200-day MA, a bearish technical event referred to as a “death cross.” The 50-day MA was last at $325.59, down from $325.86 on Friday, while the 200-day has climbed to $325.36 from $324.95 on Friday, according to FactSet. The last death cross appeared on Oct. 5, 2016 when the stock closed at $208.46; it fell another 13% before bottoming at $181.47 on Dec. 2, 2016. Tesla’s stock has lost 10.2% over the past three months, while the S&P 500 has climbed 6.8%. Tesla’s stock fallen from its Sept. 18 record of $385.00 amid production concerns, but has rallied over the last month amid apparent strong demand for its new Semi big rig.
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