Don’t look now but Tesla, Inc. (NASDAQ:TSLA) is jumping again

Don’t look now but Tesla, Inc. (NASDAQ:TSLA) is jumping again

Don’t look now but Tesla, Inc. (NASDAQ:TSLA) is jumping again

Don’t look now but Tesla is jumping again.

Shares of Tesla climbed as much as 7% in trading on Monday, rising above the $800 level it hit during last week’s wild swing. The stock later backed off those gains, closing 3.1% higher.

Part of the reason appears to be positive news from China, after the Shanghai municipal government said it would help companies like Tesla trying to deal with the coronavirus outbreak “resume production as soon as possible,” according to Reuters. Tesla’s Shanghai factory has been closed as the Chinese government looks to contain the epidemic that has killed more than 900 people.

The stock looks likely to continue its wild speculative trading. The Shanghai announcement came out Friday evening but shares gained steam Monday.

Overall stock market futures pared their losses after Chinese President Xi Jinping said he would adopt more decisive measures to curb the spread of the coronavirus.

Tesla had a crazy week last week, jumping double digits on Monday and Tuesday and then falling 17% on Wednesday.

Tesla Shanghai factory in focus

Tesla’s China vice president, Tao Lin, announced online last week that car deliveries to customers would be delayed due to the spread of the coronavirus. Lin said the early February deliveries would be delayed, since the company “will catch up the production line once the outbreak situation gets better.” According to Reuters, Lin also said Tesla’s Shanghai factory would restart production on Monday.

Tesla also temporarily closed its stores in mainland China – a key market for the company. Tesla warned during its quarterly conference call in January that coronavirus issues would dent the next quarter’s profitability slightly, although Barclays is skeptical of that explanation.

“We wonder to what extent the company will use the disruption as an opportunity to set up a better 2Q print,” Barclays said in a note to investors on Monday.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 549.81.

The projected upper bound is: 883.96.

The projected lower bound is: 676.30.

The projected closing price is: 780.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 33 white candles and 16 black candles for a net of 17 white candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 30.1194. This is not an overbought or oversold reading. 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 68.87. 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 79. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 39 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 23.210 at 771.280. Volume was 79% above average (neutral) and Bollinger Bands were 261% wider than normal.

Open     High      Low     Close     Volume___
800.000 819.990 752.400 771.280 24,689,164
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 710.93 487.29 307.24
Volatility: 178 93 71
Volume: 31,295,964 17,239,080 11,315,419

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.

Summary

TESLA INC is currently 151.0% 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 36 periods.

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