With the Fed interest rate decision behind us, traders are weighing their next move, which explains why the stock market has not really rallied. Why some may be disappointed, the current scenario offers greater stability than sentiment-driven rally.
With the Nasdaq Composite up by 20.4 percent and the S&P 500 having gained 20.6 percent year-to-date, most stocks have performed decently. A market rally at this point in time could potentially create a bubble. However, I still believe that Lloyds, Nio and Tesla share prices have more headroom.
Lloyds share price has had it rough in September, with its monthly returns at -0.6 percent as of this writing. While that figure is relatively small, it means a lot for on the FTSE 100’S best-performing financial services stocks, with year-to-date gains at 21 percent.
Nonetheless, the bank’s fundamentals look promising and could support gains in the coming days. Notably, Lloyds (LSE: LLOY) is one of the FTSE 100 stocks paying dividends this year, signaling a stable growth outlook. The only other bank paying dividends in Barclays.
Furthermore, the current price is marginally above the 20-EMA (GBX 57.94), 50 (GBX 57.60) and 200-EMA (GBX 53.24). Therefore, this could be a good entry point before Lloyds share price returns to the upside.
Lloyds share price pivots at GBX 58.00, and the upside will likely prevail if the price stays above that mark. Initial tresistance could come at GBX 58.32, but if the buyers extend their control, they could clear that barrier to test 58.70.
On the other hand, a move below GBX 58.00 will favour the sellers. The downward momentum could initially find support at GBX 57.62, but extended control by the bears could enable them to breach that level and test GBX 57.26. Meanwhile, the upside narrative will be invalid if that happens.
Tesla share price spiked on Monday, rising by 4.1 percent in the first hour of trading to go for $248.1. That saw it return near two-month highs, with the clock ticking on the much-awaited Robotaxi unveiling day. CEO Elon Musk is attempting to transform the company from an EV manufacturer to an AI-driven tech company through the Full Self Drive platform.
A successful showcase of the Robotaxi on October 10 could certainly raise Tesla’s profile. The company has already jumped over critical regulatory hurdles in Europe and China, and the ball is now in Tesla’s court. Based on this sentiment, I expect Tesla (Nasdaq: TSLA) share price to rise significantly in the coming days.
However, the degree of volatility will also depend on its delivery numbers set for release next week. The company’s deliveries fell by 6.5% in the first half of the year compared to the same period in 2023, and investors will be hoping for an uptick in the third quarter.
Tesla share price will likely continue rising if the momentum keeps the price above $246.79. With that in play, the first hurdle will likely be at $250.58. However, extended bullishness could enable a break above that level to test $253.88.
Alternatively, the bears could take control if the price moves below $246.79, with initial support likely to be at $243.16. Furthermore, if they extend their hold of the market, it could render the upside narrative invalid, and instead result in further losses to test $239.73.
Nio stock price has had a stellar performance in September, gaining 35 percent this month with a week to go. However, the stock was rejected at $5.60, but could break above that barrier in the next week. September is a critical month for Nio (NYSE: NIO), as investors will get to see the impact of the newly-lauched Onvo L60 model on the EV company’s sales figures.
The Onvo L60 hit showrooms at the beginning of the month, and was a departure from Nio’s expensive high-end models. With a lower price tag aimed at rivaling the likes of Tesla’s Model Y, investors expect to see a spike in the sales figures this month. However, that also means that Nio share price could rise significantly this week.
Meanwhile, Nio’s battery swap business has picked up strong momentum, and is considered a masterstroke in the EV industry. Nio customers have hailed it as time-saving, and could enable EVs to compete shoulder-to-shoulder with petrol-driven vehicles once enough sawp stations are in place. Also, the company has been ramping up its charging stations, and hit the 4,000 station milestone in China today.
The Money Flow Index (MFI) indicator reading is at 71, signaling a strong positive money flow inyo Nio shares. That will favour the upside if the price action stays above the $5.46 pivot mark. With the bulls in control, look for the first resistance at $5.55. However, a stronger upward push could break above that barrier to test $5.60.
Conversely, moving below $5.46 will favour the sellers to take control, and the first support will likely be at $5.40. However, if the downside momentum strengthens, the first support could be breached, resulting in the invalidation of the upside narrative. Also, the downside could extend to test 45.32.
This post was last modified on Sep 23, 2024, 17:09 BST 17:09