Tesla, Inc. (NASDAQ:TSLA) first-quarter delivery numbers could work as ‘de-risking event’

Tesla, Inc. (NASDAQ:TSLA) first-quarter delivery numbers could work as ‘de-risking event’

Tesla, Inc. (NASDAQ:TSLA) first-quarter delivery numbers could work as ‘de-risking event’

Tesla Inc. first-quarter deliveries may come in below expectations, but the bearish news likely is already accounted for in the stock price and the announcement could work as a “de-risking event.”

That’s from analysts at Baird, known bulls on Tesla TSLA, +1.38% which has been hit lately with mostly negative Wall Street takes about its first-quarter deliveries numbers, expected next week.

Analysts polled by FactSet expect Tesla to deliver 77,000 vehicles in the first quarter, including 55,000 Model 3 sedans. Concerns have swirled that demand for Tesla vehicles are lagging and margins dwindling.

Shares have gained around 7% in the past 12 months, which contrasts with gains of about 8% for the S&P 500 index SPX, +0.36%  

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 303.05.

The projected upper bound is: 305.97.

The projected lower bound is: 248.64.

The projected closing price is: 277.30.

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 27 white candles and 23 black candles for a net of 4 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 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 82.8060. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 47.17. 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 137 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 22. 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 3.790 at 278.620. Volume was 16% below average (neutral) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
277.160 280.330 275.100 278.620 6,774,093

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

Moving Averages: 10-period 50-period 200-period
Close: 270.62 295.60 314.90
Volatility: 49 59 74
Volume: 9,158,731 8,872,068 9,331,718

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 11.5% 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 26 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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