Tesla, Inc. (NASDAQ:TSLA) Breaks Ground for Gigafactory in China

Tesla, Inc. (NASDAQ:TSLA) Breaks Ground for Gigafactory in China

Tesla, Inc. (NASDAQ:TSLA) Breaks Ground for Gigafactory in China

A number of auto companies reported sales figures for 2018 in the past week. Favorable economic conditions, along with growing consumers’ appetite for spacious vehicles, aided the industry to record annual new-vehicle sales of 17.27 million in 2018, marking a yearly increase of 0.3%.

Buyers continued to splurge on sports utility vehicles, crossovers and pickup trucks while passenger car sales waned, similar to 2017. Car sales contributed 32% to the total sales in 2018 while trucks and SUVs added 68%. Although the industry managed to keep its winning streak alive, the same can’t be anticipated in 2019. Rising interest rates and vehicle price hikes are expected to influence buyers to make choices.

The issue of recalls continued to hurt automakers. Ford Motor Company F announced a worldwide recall of around one million vehicles to replace Takata airbags, per AP. The airbags can explode when deployed, causing injury to passengers. Again, Toyota Motor Corporation TM announced a worldwide recall of 1.7 million vehicles to fix faulty Takata airbag inflators, per Reuters. This recall by Toyota is part of the ongoing recall campaign announced by automakers in 2016.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 377.96.

The projected lower bound is: 312.55.

The projected closing price is: 345.25.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 89.2878. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 54.40. 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 84 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 2 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 6.440 at 344.970. Volume was 33% below average (neutral) and Bollinger Bands were 10% wider than normal.

Open High Low Close Volume___
334.400 345.390 331.790 344.970 6,056,354

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 326.48 341.13 313.02
Volatility: 77 64 75
Volume: 7,688,345 7,255,487 9,365,416

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 10.2% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 16 periods.

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