04/20/2021 |

$TSLA Weekly Chart Case Study: Back-Testing Citigroup Analyst Estimates

DYOR (Do Your Own Research) is the mantra of the veteran retail trader. However, there are many investors who choose not to go it alone and rely on investment brokerage services for insights on how to invest and trade the markets. There is nothing inherently wrong with this choice, as quite a few high net individuals have benefited from having their portfolios managed by investment brokers with proven track records. Be that as it may, TrendSpider’s Chief Market Analyst, Jake Wujastyk, has uncovered an interesting inconsistency between the analyst estimates of some investment brokerage houses and how stocks have actually performed following their rating looking at $TSLA.

TSLA Weekly Chart with Analyst Estimates: Back testing Citigroup


This chart highlights some pretty interesting information regarding the ability to look at different analyst ratings/estimates on the TrendSpider platform. This particular example looks at Citigroup analyst ratings since September of 2019 which have all been “sell” ratings. The interesting thing about this is that if you look back and test what price action did after these ratings came out; Tesla never had any type of pullback. The Citigroup sell ratings were almost always at a bottom before price continued to move up strong. In this case, it is hard to take a “sell” rating from Citigroup seriously as price has almost always done the opposite. This is a great way to use charts and price action with traditionally non-technical information, such as analyst ratings.

Back-Testing Engine 

TrendSpider has implemented back-testing into the platform because it puts the power of information into the hands of the individual retail trader. TrendSpider’s back-testing engine does not only allow traders to confirm the profitably of various trading strategies, but also provides a look into the strategies employed by major trading houses that may work for OR against you. With this tool in your trading arsenal, you can greater insights into various macro trends in the market to make more informed choices.

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