Tesla, Inc. (NASDAQ:TSLA) analysts are sharply upping earnings estimates
Tesla’s Inc. (TSLA) shares have soared by nearly 30% over the past month, a stark contrast to the broader S&P 500 decline of 6%. But now options traders are betting the stock rises by another 9% in the coming weeks. Meanwhile, the technical chart supports the shares’ rise as well.
Tesla’s sharp rise amid broader stock market volatility is a result of the company’s strong quarterly results. The company delivered a profit that came in well above analysts expectation and defied the skeptics. That profit was a result of the successful ramp-up of its new 4-door sedan, the Model 3. Now the analysts are sharply upping earnings estimates for the company.
The call options for expiration on November 16 at the $340 strike price are overwhelmingly bullish. The number of calls outweighs the puts by a ratio of 10 to 1 with 6,100 open contracts. A buyer of those calls would need the stock to rise to $356 to earn a profit. But even more bullish is the increasing number of bullish bets at $360. A buyer of those calls would need the stock to rise to $368 to earn a profit.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 387.98.
The projected lower bound is: 305.89.
The projected closing price is: 346.94.
A white body occurred (because prices closed higher 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 25 white candles and 25 black 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 85.8330. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 2 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 67.83. 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 39 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 95. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 12 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 2.130 at 346.410. Volume was 27% below average (neutral) and Bollinger Bands were 81% wider than normal.
Open High Low Close Volume___
343.740 349.200 340.910 346.410 7,807,971
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 318.21 292.44 311.17
Volatility: 81 92 72
Volume: 13,999,770 10,852,289 9,088,453
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 11.3% above its 200-period moving average and is in an upward 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 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 7 periods.