3 Big Stock Charts for Monday: Tesla Motors Inc (TSLA), Chipotle Mexican Grill, Inc. (CMG) and Chevron Corporation (CVX)

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Editor’s note: This article was updated to show the correct move Chevron has made from February lows.

We’re heading into a tough season of the year, as August carries with it the worst performance record of any month of the year. The reasons may be as simple as everyone is away from the trading desk.

Regardless, August makes it harder for investors to make money while giving potential opportunities to traders to take advantage of technical gyrations.

Tesla Motors Inc (NASDAQ:TSLA), Chipotle Mexican Grill, Inc. (NYSE:CMG) and Chevron Corporation (NYSE:CVX) each have charts that are ready to flash buy or sell signs for the technicians to take advantage of.

Tesla Motors Inc (TSLA)

3 Big Stock Charts for Monday: Tesla Motors Inc (TSLA), Chipotle Mexican Grill, Inc. (CMG) and Chevron Corporation (CVX)
Source: Chart courtesy of StockCharts.com

The media and investors have been growing increasingly skeptical of Elan Musk lately as questions regarding how the company will meet production demand arise, as Tesla has struggle with their growing demand. The company is set to announce its quarterly earnings later this week on Wednesday, an even that will have larger implications on TSLA share price.

The stock has seen some selling as we head into earnings this week, almost settling into a technical strong support zone. Currently, the $410-$415 zone houses the 20- and 50-day moving averages, which should combine to provide technical support for the shares.

From a longer-term perspective, Tesla stock’s 20-month moving average sits at $226, which should also help to support the shares on any positive news as this is the line of demarcation between long-term bull and bear trades for stocks. Expect to see the long-term bulls continue to buy shares on any good news on Wednesday.

Chevron Corporation (CVX)

3 Big Stock Charts for Monday: Tesla Motors Inc (TSLA), Chipotle Mexican Grill, Inc. (CMG) and Chevron Corporation (CVX)
Source: Chart courtesy of StockCharts.com

Chevron shares have rallied more than 40% from their February bottom, putting shares at technical risk of some profit-taking as oil prices begin to drift lower.

The 40% rally took Chevron stock to into striking distance of the most well-known Fibonacci retracement resistance levels. Currently, the $110 level on CVX shares represents the 50% retracement from the 2014 to the 2016 lows for the stock. Historically, the halfway point for a rally tends to act as resistance for the shares to continue.

As a result of the recent pullback, Chevron stock is now trading below its respective 50-day moving average for the first time since March. This trendline has also indicated that it is in a transition phase as it has flattened and is now beginning to build some negative momentum.

Chevron shares should get a little bit of buying interest as the short-term RSI indicated Friday that the shares were nearing an oversold signal. At this point though, the long-term technical picture suggests that this would be little more than a fake-out rally that would once again stall at $105 before reversing and moving towards a short-term target of $88.

Chipotle Mexican Grill, Inc. (CMG)

3 Big Stock Charts for Monday: Tesla Motors Inc (TSLA), Chipotle Mexican Grill, Inc. (CMG) and Chevron Corporation (CVX)
Source: Chart courtesy of StockCharts.com

Chipotle Mexican Grill shares are trying to establish their presence at the $400 mark by building technical support here for the last six months. Since January, this has clearly been a line in the sand for investors and traders as each touch has resulted in renewed buying interest on the shares.

Last week, Chipotle Mexican Grill’s earnings catapulted the stock from the $400 mark to $450 and a short-term overbought condition, which is now unwinding as the stock slowly gravitates back towards $420.

Intermediate-term technical support for Chipotle shares is building at $415 as the 20- and 50-day moving averages are getting ready to converge with each other

A successful test of this support level will draw more traders into the fold and target a price near $485 as the next technical target.

As of this writing, the Johnson Research Group did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/tesla-motors-inc-tsla-chipotle-mexican-grill-inc-cmg-and-chevron-corporation-cvx-3-big-stock-charts-for-monday/.

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