Tesla, Inc. (NASDAQ:TSLA) expected to report profit this week
Red flags are popping up around Tesla, even as the company is expected to report another profitable quarter this week.
A falling share price, expiring electric vehicle credits and a mountain of debt in about five weeks all loom over Tesla as investors wait for its fourth-quarter earnings release after the markets close Wednesday. They’ll be looking to see how the last three months of the year compared with its strong third-quarter results, which surprised investors with a profit, better-than expected car sales and faster production of its Model 3 sports sedan.
CEO Elon Musk said earlier this month that Tesla was also profitable on an unadjusted basis during the fourth quarter, although it was smaller than the previous three months. Musk hinted at the results in announcing layoffs of about 7 percent of the company’s workforce, as it struggles to remain “sustainably profitable” as Musk has promised.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 321.91.
The projected upper bound is: 333.97.
The projected lower bound is: 259.30.
The projected closing price is: 296.63.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 55.3342. 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 40.07. 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 96 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 -67. This is not a topping or bottoming area. The last signal was a buy 2 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 5 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 1.080 at 297.460. Volume was 48% below average (neutral) and Bollinger Bands were 17% wider than normal.
Open High Low Close Volume___
295.270 298.557 291.800 297.460 4,621,692
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 310.89 335.04 314.95
Volatility: 88 73 74
Volume: 8,948,776 7,379,103 8,994,754
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 5.6% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 6 periods.
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