Tesla, Inc. (NASDAQ:TSLA) could be poised for an even bigger recovery
Tesla stock (NASDAQ:TSLA) could be poised for an even bigger recovery, according to one of the electric car maker’s biggest bulls. In a recent note, Ben Kallo of Baird, one of Tesla’s most ardent supporters in Wall Street, reiterated his “Outperform” rating on TSLA stock, as well as his optimistic $355 per share price target.
In a recent note titled Q2: The Next Step in Restoring Bull Thesis, Kallo stated that he likes the Tesla share setup for the balance of the year. The Baird analyst further noted that Tesla’s further execution, starting with its second-quarter earnings report, will “help restore credibility and create a challenging short environment.”
Kallo pointed out that expectations for Tesla stock have become “overly negative” as of late, despite bear arguments shifting to margins following the company’s release of its record-breaking second-quarter production and delivery numbers. Despite these pervading sentiments, the Baird analyst nevertheless believes that the company’s margin results could exceed estimates, which would likely be viewed favorably by investors.
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 233.86.
The projected upper bound is: 271.67.
The projected lower bound is: 235.67.
The projected closing price is: 253.67.
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 24 white candles and 26 black candles for a net of 2 black candles.
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 83.5551. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 25 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 70.37. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 31 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 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 30 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -1.320 at 253.540. Volume was 55% below average (consolidating) and Bollinger Bands were 4% narrower than normal.
Open High Low Close Volume___
255.050 255.750 251.885 253.540 4,764,483
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 243.04 219.79 282.60
Volatility: 33 54 66
Volume: 7,867,610 10,688,156 9,612,686
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 10.3% below its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on TSLA.O and have had this outlook for the last 24 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition.