A Bullish 'Golden Cross' Appears on Tesla's Stock Chart for the First Time in Over a Year

Tesla Inc. shares experienced a significant rally on Monday, marked by the first bullish moving-average crossover signal seen in over a year.

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Tesla's stock (TSLA) surged 3.8% in morning trading after enduring a 12.6% decline over a three-week losing streak that ended last Friday. This marked the longest such losing streak since a six-week stretch concluded on January 26.

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The notable drop in this period included a 12.3% plunge on July 24, following Tesla’s second-quarter profit report that fell short of expectations and the announcement that its highly anticipated “robotaxi” event was postponed to October 10.

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On Monday, Tesla's 50-day moving average, often regarded as an indicator of short-term trends, increased to $205.07 from $204 on Friday. Simultaneously, the 200-day moving average, a widely recognized indicator of long-term trends, slightly decreased to $204.66 from $204.84.

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This occurrence, known as a "golden cross," is viewed by many chart analysts as the point where a short-term rebound potentially evolves into a sustained uptrend. Although these crossovers are not intended as precise market-timing signals due to their predictability, they offer insight into the duration and strength of a current trend.

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The recent golden cross appears nearly six months after a similar bearish crossover, called a "death cross," emerged on February 1. Following the death cross, Tesla’s stock plummeted 24.8%, reaching a 15-month closing low of $142.05 on April 22. Since then, the stock has rebounded, trading 60.5% above that low.

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The last golden cross for Tesla occurred on June 23, 2023, after which the stock climbed an additional 14.3% before peaking approximately three weeks later. The previous golden cross appeared on August 30, 2021, and the stock subsequently surged 68.3% before reaching its peak on November 4, 2021.

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Despite these trends, Tesla’s stock has declined by 8.2% year-to-date, making it the only member of the "Magnificent Seven" technology giants to be down this year. In contrast, the tech-heavy Nasdaq-100 Index (NDX) has gained 14% this year, and the S&P 500 index (SPX) has advanced by 14.8%.

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