Tesla, Inc. (NASDAQ:TSLA) Elon Musk settles fraud charges

Tesla, Inc. (NASDAQ:TSLA) Elon Musk settles fraud charges

Tesla, Inc. (NASDAQ:TSLA) Elon Musk settles fraud charges 

Tesla shares soared by more than 17 percent Monday after chief executive Elon Musk settled a federal lawsuit over the weekend that could have resulted in his ouster from the company and thrown the all-electric carmaker into chaos.

The Securities and Exchange Commission sued Musk after accusing him of misleading investors when he announced on Twitter in August that he was planning to take the company private and proclaimed that he had already secured the funding to seal the deal. Regulators sought to remove Musk from Tesla and ban the billionaire entrepreneur from serving as chief executive of any public company. The company’s stock dropped by 14 percent following the suit.

Although the settlement with the SEC ends a potentially disastrous legal confrontation, Tesla still faces a Justice Department investigation and several shareholder lawsuits. The company’s underlying business challenges, which have included recent production and delivery delays, may persist, experts say, even as the company has made peace with financial regulators.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 356.44.

The projected lower bound is: 264.84.

The projected closing price is: 310.64.

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 29 white candles and 21 black candles for a net of 8 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 52.4618. 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 53.53. 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 15 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 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 0 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 11 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 45.930 at 310.700. Volume was 116% above average (neutral) and Bollinger Bands were 32% narrower than normal.

Open High Low Close Volume___
305.770 311.440 301.050 310.700 21,777,596

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

Moving Averages: 10-period 50-period 200-period
Close: 297.46 310.86 316.10
Volatility: 138 95 67
Volume: 11,834,662 10,902,320 8,372,111

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 1.7% 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 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 23 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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