Tesla’s Stock Poised for Breakout: Key Price Levels to Watch

Tesla (TSLA) shares surged over 4% on Wednesday, defying a broader downturn in large-cap tech stocks. Despite a 25% gain over the past three months, Tesla’s stock has remained relatively flat since late July. Investors are awaiting critical updates on vehicle deliveries, the highly anticipated robotaxi event, and Q3 earnings, all expected next month.

Symmetrical Triangle Formation: Potential for Volatility Ahead

Tesla’s chart reveals a symmetrical triangle pattern, signaling a pause in price movement. This formation suggests that a significant move could be on the horizon, either upwards or downwards. Investors should pay close attention to the following key levels that could shape Tesla’s next trend.

Upside Breakout Levels to Watch

If Tesla’s stock breaks above the symmetrical triangle with strong trading volume, it could rally to the $265 mark, where previous highs from December and July may create resistance. Should momentum continue, the stock could target $300, where it would likely face substantial resistance from levels last seen between December 2021 and July 2022.

Key Support Levels on a Breakdown

Conversely, a breakdown below the triangle pattern could push Tesla’s stock down to the $185 level. This zone could offer support, aligning with the neckline of an inverse head-and-shoulders pattern formed between February and June. Should weakness persist, the next critical support area lies near $152, where bargain hunters may step in around the swing low from April 2023, coinciding closely with another low from April 2024.

Tesla’s stock is at a crucial juncture, and the next move could set the tone for its performance in the coming months. Investors should monitor these key price levels closely as the company gears up for a potentially game-changing quarter.

Qualcomm, Samsung, and Google Collaborate on Mixed-Reality Glasses: A New Approach to AR/VR Technology

Qualcomm’s CEO Cristiano Amon has revealed that the company is partnering with Samsung and Google to develop a new set of mixed-reality glasses, offering a distinct alternative to Apple’s larger headset approach. This collaboration, first announced last year, aims to create glasses that seamlessly integrate augmented reality (AR) and virtual reality (VR) experiences, connected directly to a smartphone. Amon highlighted that the primary goal is to deliver “new experiences” through these smart glasses, with the ultimate vision of encouraging smartphone users to purchase them as complementary devices. Unlike Apple’s Vision Pro, the Samsung-Google-Qualcomm collaboration focuses on smaller, wearable glasses that may offer a more practical and stylish solution for daily use.

Qualcomm’s Role and AR1 Gen 1 Chip

Qualcomm, which has made mixed-reality technology a strategic focus as it diversifies from its smartphone-centered business, is contributing its Snapdragon AR1 Gen 1 chip specifically designed for smart glasses. This chip is crucial in Qualcomm’s broader strategy of enabling AI applications to run directly on devices, enhancing the processing power of both the glasses and the smartphone they connect to. Amon emphasized the importance of localized AI processing: “AI will run on the device, on the cloud, and across both the glasses and the phone,” delivering enhanced, real-time experiences without relying solely on cloud infrastructure.

Market Potential and Challenges

While mixed-reality headsets remain a smaller segment compared to the vast smartphone market with the International Data Corporation predicting only 9.7 million VR/AR headsets shipped this year compared to 1.23 billion smartphones, smaller and more wearable devices like smart glasses could unlock broader consumer adoption. Amon believes the industry needs to achieve a level of comfort and style, where these glasses resemble regular eyewear, to drive mass adoption. In comparison to Meta’s Ray-Ban smart glasses, which are integrated with a camera and AI-powered voice assistant, Qualcomm’s vision is centered around creating a product that feels as natural as wearing everyday glasses, yet fully capable of delivering mixed-reality experiences.

Strategic Implications for Tech Giants

This project represents a significant step in the competition among tech giants for leadership in the mixed-reality space. Apple’s Vision Pro headset has already made waves, but Google, Samsung, and Qualcomm are betting on a different form factor and strategy. With further details expected to emerge soon, this collaboration could be pivotal in shaping the future of AR and VR, potentially transforming how consumers interact with technology in their daily lives. As the development progresses, industry watchers are keen to see how this trio’s product will stand up against other emerging AR/VR technologies, including Apple’s high-profile offerings.

Dollar Struggles Amid Growing Bets on Aggressive Fed Rate Cut

The U.S. dollar found itself under pressure on Thursday, weighed down by rising expectations of an outsized rate cut from the Federal Reserve as concerns about the U.S. economy’s growth outlook intensify. Renewed fears over the slowing U.S. labor market and softer-than-expected economic data have driven investor sentiment toward a more aggressive easing cycle by the Fed. Amid this, the Japanese yen emerged as a standout performer, gaining on the back of its safe-haven status and speculation that upcoming rate hikes from the Bank of Japan (BoJ) could strengthen the yen by narrowing interest rate differentials. The yen rose 0.26% to 143.36 per dollar, reaching a one-month high earlier in the session. For the week, the yen is up 1.8%, reflecting increased demand for safer assets.

U.S. Economic Outlook and Fed Expectations

Global financial markets remain on edge, with stocks taking a hit following weak U.S. economic data. Earlier this week, U.S. job openings for July fell to a 3.5-year low, indicating a cooling labor market. This came on the heels of Tuesday’s ISM manufacturing report, which showed continued contraction in the sector. Investors are now factoring in the possibility of a larger-than-expected rate cut by the Fed, as economic growth prospects appear less robust than previously forecast. Hemant Mishr, Chief Investment Officer at S CUBE Capital, remarked, “The markets are becoming more anxious. There’s been a shift from focusing on positive news to rationalizing a sell-off based on negative data.” Economists at Wells Fargo noted that the latest labor market data reaffirm the notion that the job market is no longer a primary source of inflationary pressure for the U.S. economy. With the Fed focused on labor market stability, any signs of further weakening are likely to influence the central bank’s decision-making.

Dollar’s Performance and Market Sentiment

The U.S. dollar made a modest recovery on Thursday, inching up 0.02% against a basket of major currencies to 101.28, but remained subdued overall. The euro dipped slightly by 0.05% to $1.1077, while the British pound held steady at $1.3146. Meanwhile, the Australian dollar slipped 0.02% to $0.6724, although it remained supported by a still-hawkish stance from the Reserve Bank of Australia. Investors are now betting on a 45% chance of the Federal Reserve lowering interest rates by 50 basis points at its upcoming meeting, with more than 100 basis points worth of cuts priced in by the year’s end. The market’s focus remains squarely on Friday’s nonfarm payrolls report, where economists expect the U.S. economy to have added 160,000 jobs in August, compared with 114,000 in July. The unemployment rate is anticipated to tick down to 4.2%. Mishr from S CUBE Capital commented, “If the unemployment rate rises beyond 4.5%, markets will likely start pricing in a more aggressive 50-basis-point cut.”

Global Currency Movements

Elsewhere, the New Zealand dollar edged up 0.05% to $0.6202, while the Chinese yuan strengthened, with the onshore rate gaining around 0.2% to 7.1003 per dollar, approaching its strongest level in over a year.

As the U.S. economy shows signs of slowing, the prospect of a significant rate cut by the Federal Reserve continues to weigh on the dollar, while currencies like the yen and yuan benefit from their safe-haven status. All eyes are now on Friday’s labor market report, which could set the tone for the Fed’s next move.