Tesla, Inc. (NASDAQ:TSLA) Breaks Out Above Buy Point
The tech-heavy Nasdaq composite continued to show significant weakness in the stock market today. The Nasdaq declined more than 2.5% midday Monday. With the stock market’s uptrend under pressure, investors should be cautious about which stocks to buy as they break out past potential buy points.
Tesla (TSLA) stock advanced more than 1% Monday, sharply outperforming the major stock indexes. The stock broke out above a cup with handle’s 357.68 buy point, as viewed on the daily chart.
On Oct. 23, Tesla stock began its sharp move off its recent lows after short seller Citron Research reversed its position from short to long on the stock. One day later, Tesla announced strong earnings results with the company unexpectedly turning an adjusted profit of $2.90 a share, according to calculations by William O’Neil + Co.
The stock’s relative strength line is on the cusp of hitting a new high. The RS line should hit a new high to confirm the strength of the stock’s breakout.
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 317.95.
The projected upper bound is: 394.42.
The projected lower bound is: 315.23.
The projected closing price is: 354.83.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 75.7927. This is not an overbought or oversold reading. The last signal was a sell 9 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 64.20. 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 50 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 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 4 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -0.840 at 353.470. Volume was 6% below average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
356.340 366.750 352.880 353.470 9,708,871
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 346.14 303.23 311.15
Volatility: 42 88 72
Volume: 6,529,812 10,220,919 9,172,657
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 13.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume into TSLA.O (bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 18 periods.