Shares of Tesla Inc. suffered Tuesday their biggest loss since going public to kick off the second bear market this year, as investors rode a roller coaster over the past week that started with a climb to a record close and was followed by a stock offering, a big bounce, and then an S&P 500 index snubbing.
The electric vehicle and battery maker’s stock TSLA, -21.06% plunged 21.1% to close at $331.21 Tuesday. The previous record selloff was the 19.3% drop on Jan. 13, 2012, while the biggest post-COVID-19 crisis decline was 18.6% on March 16. Tesla went public on June 29, 2010, at a pre-split adjusted initial public offering price of $17 ($3.40 split adjusted).
Tesla’s stock has now plummeted has lost 33.7% since closing at a record $498.32 about a week ago, which is the day a 5-for-1 stock split took effect.
That last time Tesla’s stock entered a bear market was Feb. 27, 2020, when it closed at a split-adjusted $135.80 to be down 26.0% from its Feb. 19 record close (at the time) of $183.48. The stock went on to fall as much as 60.6%, as it bottomed at a three-month closing low of $72.24 on March 18.
The stock closed at a new record of $189.98 on June 8, or 70 trading days after it entered a bear market.
Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products.
The Company operates through two segments: Automotive, and Energy generation and storage.
The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles.
The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers.
The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market.
It develops energy storage products for use in homes, commercial facilities and utility sites.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 342.76.
The projected upper bound is: 398.84.
The projected lower bound is: 267.11.
The projected closing price is: 332.98.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 12.7933. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 41.88. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -172.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -88.110 at 330.210. Volume was 99% below average (consolidating) and Bollinger Bands were 148% wider than normal.
Open High Low Close Volume 356.000 368.740 329.880 330.210 739,399
Technical Outlook Short Term: Oversold Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 430.20 329.63 179.94 Volatility: 178 119 112 Volume: 84,668,984 79,323,312 80,979,928
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TESLA INC gapped down today (bearish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 83.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 16 periods.
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