Tesla, Inc. (NASDAQ:TSLA) bulls and bears took an interesting turn after Tesla’s 2Q earnings last week

Tesla, Inc. (NASDAQ:TSLA) bulls and bears took an interesting turn after Tesla’s 2Q earnings last week

Tesla, Inc. (NASDAQ:TSLA) bulls and bears took an interesting turn after Tesla’s 2Q earnings last week

The long-fought battle between Tesla (TSLA) bulls and bears took an interesting turn after Tesla’s 2Q earnings last week. Tesla missed big on its gross margins and reiterated its prior forecast for its 2019 delivery numbers. The numbers were somewhat overshadowed by the resignation of CTO JB Straubel. Straubel has been with the company since its founding and is credited for developing many of the company’s key battery technology innovations.

Morgan Stanley analyst Adam Jonas wonders if Tesla can continue to fund its growth ambitions without requiring additional external capital. Meanwhile, the analyst reiterates an Equal-weight rating on TSLA and with $230 price target, which implies about 6% downside from current levels.

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 238.70.

The projected upper bound is: 264.37.

The projected lower bound is: 220.30.

The projected closing price is: 242.34.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 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 47.1937. 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 51.96. 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 4 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 -37. This is not a topping or bottoming area. The last signal was a buy 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 sell 4 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -0.650 at 241.610. Volume was 15% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open     High      Low     Close     Volume___
243.000 246.680 236.650 241.610 9,178,208

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 246.90 222.85 281.31
Volatility: 94 62 64
Volume: 9,376,163 10,646,590 9,478,716

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 14.1% below its 200-period moving average and is in an downward 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 bearish on TSLA.O and have had this outlook for the last 1 periods.

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