Tesla, Inc. (NASDAQ:TSLA) fell by as much as 4% after the electric-car maker reported a wider-than-expected first-quarter loss
Investors intimately familiar with the way Tesla shares trade – wildly – know the stock found itself in a technically precarious position on Thursday.
As the stock fell by as much as 4% – to a six-month low – in the wake of disappointing quarterly earnings results, shares sliced below the $US250 level, widely seen among technical analysts as a significant area of support over the last two years. By early Thursday afternoon, the stock had traded in a range between $US248.41 and $US258.47 a share.
To be sure, Wall Street on the whole still thinks shares are headed higher. The average Wall Street analyst’s price target of $US296, per data compiled by Bloomberg, implies a 19% rally from Thursday’s session lows.
Tesla was down 25% this year, including Thursday’s drop.
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 292.79.
The projected upper bound is: 270.02.
The projected lower bound is: 222.67.
The projected closing price is: 246.35.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 18.8049. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 14 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 33.34. 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 156 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 -217.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 3 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -11.030 at 247.630. Volume was 150% above average (trending) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
255.000 259.000 246.070 247.630 21,849,392
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 265.33 281.25 308.40
Volatility: 40 53 73
Volume: 10,056,405 9,462,663 9,234,328
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 19.7% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on TSLA.O and have had this outlook for the last 9 periods.