Regulator had been monitoring Tesla, Inc. (NASDAQ:TSLA) chief executive’s posts on social media
When Elon Musk last week on Twitter said Tesla Inc. would build 500,000 vehicles this year, only to clarify himself a few hours later, it set off alarm bells inside the regulator he had been goading for months.
Tesla (TSLA) stock went down 5% last night after investors panicked over the SEC trying to hold Elon Musk in contempt of his settlement deal over a tweet.
Now, the automakers stock has erased the losses today as it appears that the SEC could be overreaching by going after Musk for the tweet.
Yesterday, the SEC asked a judge to hold Musk in contempt for violating one of the terms of the settlement of SEC’s complaint against Musk over his “funding secured” comment about his attempt to take Tesla private.
The SEC settlement requires that Musk gets pre-approval for tweets that “reasonably could contain material information” that could move the stock.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 316.00.
The projected upper bound is: 332.55.
The projected lower bound is: 260.42.
The projected closing price is: 296.49.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 36.1800. This is not an overbought or oversold reading. The last signal was a buy 1 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 42.66. 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 buy 115 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 -103.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 3 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -0.910 at 297.860. Volume was 7% above average (neutral) and Bollinger Bands were 60% narrower than normal.
Open High Low Close Volume___
292.220 302.010 288.770 297.860 8,582,535
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 302.24 318.02 316.22
Volatility: 29 72 73
Volume: 6,093,433 7,497,723 9,016,400
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 is currently 5.8% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 4 periods.
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