What the Oil Slump Means for Chevron, Tesla
Like some of you, I was around the first time the Nasdaq moved to 5K. After the selloff, I wasn't certain I’d be around for the next move.
But, here we are, bumping up right against that number. I don’t know if the index firmly takes it out, so I’d wait for a close above that resistance, before committing big money to tech.
The oil plunge has been the story, with many writing off oil stocks. I think they may have put in a bottom, though, with stocks like Chevron (NYSE:CVX) showing a double-bottom base. I think it’s a buy now with a stop below support.
If oil does stay down, does that diminish the case for Tesla (NASDAQ:TSLA)? I don’t know, but I was avoiding it weeks ago. The picture hasn’t improved and if it breaks its current uptrend line, it looks like a $150 stock.
Back next week to see if holiday cheer continues to spread.