As Nvidia (NASDAQ: NVDA) stock started to consolidate, signaling that the semiconductor behemoth might have reached its zenith and leading other stocks from its sector tumbling, the representative of the electric vehicle (EV) industry, Tesla (NASDAQ: TSLA), has done the opposite.
Specifically, Tesla stocks have started to demonstrate the TTM (‘Trade the Market’) Squeeze indicator, which often signals that an asset’s price is likely to break out soon, in this case, to the upside, as observed by market analytics and trading platform TrendSpider in an X post on September 5.
Indeed, these experts have identified that Tesla shares were TTM squeezing, referring to the indicator that observes the relationship between Bollinger Bands (BB) and Keltner Channels (KC) to possibly notice consolidations and signal when prices will likely break out.
Notably, the red dots along the horizontal axis indicate that TSLA stock is ‘squeezing’ out the last bit of consolidation from a period of sideways price movements and is building up energy to move into a trending market marked by bullish momentum.
As the TrendSpider team implied, if this happens, it could lead the rest of the stocks in the EV market to follow suit, including Nio Inc. (NYSE: NIO), Rivian Automotive (NASDAQ: RIVN), BYD (OTC: BYDDY), and others, thus ending the dominance of semiconductor stocks and ushering the age of EV stocks.
Tesla stock price analysis
In fact, the price of Tesla shares at press time stood at $229.68, which indicates an increase of 4.69% on the day, adding up to the 9.40% advance across the week, as well as gaining 15.64% in the past month, according to the latest data retrieved by Finbold on September 5.
So, why is Tesla stock going up? Notably, the recent rise could be a reaction to an X post by CEO Elon Musk, where he hinted at the potential use of robots by the EV maker and stated that shareholders should expect a “wild” future involving robots, as the carmaker has been focusing on artificial intelligence (AI).
Meanwhile, Wall Street analysts remain on the fence concerning the future price of Tesla stock, a majority of them rating it as a ‘hold,’ and expecting an average price of $211.46, which would reflect a decrease of 7.93%, according to the most recent TipRanks information.
Nvidia stock price analysis
At the same time, Nvidia stock’s price amounts to $108.34, recording a 2.49% increase on its daily chart but losing 10.67% on the week, as well as reducing its monthly advances to a mere 8.40%, as the latest price charts indicate.
So, why is Nvidia stock going down today? As it happens, the answer to the question of why did Nvidia stock drop could lie in the recent subpoena from the United States Department of Justice (DoJ) regarding Nvidia’s potential antitrust violations, but it could also indicate a natural rotation.
On the other hand, Wall Street has retained its bullish attitude toward NVDA shares, with the majority of its experts offering Nvidia stock price targets over the past three months giving it a ‘strong buy’ score and placing its average price in the next 12 months at $151.79, up 40.11% from now.
Conclusion
Ultimately, trends in the stock market could go either way but, at the moment, the winds do seem to be blowing favorably in the direction of certain EV stocks, signaling that the semiconductor stocks might be done advancing, at least for now. However, doing one’s own research is critical when investing significant amounts of money as this, too, can change.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
