Tesla, Inc. (NASDAQ:TSLA) Following the Technicals
In the absence of certainty regarding fundamentals, stocks tend to trade on technicals and sentiment until the next fundamental catalyst arrives. That is exactly the situation we have with Tesla (NASDAQ:TSLA). Tesla announced third quarter delivery numbers at the beginning of October. They were really good. But, Tesla stock failed to rally because of bad optics related to CEO Elon Musk and a broader market sell-off.
Now, the whole market is waiting for the Q3 earnings report to see whether or not Tesla produced and delivered a record number of vehicles at a profit or at a loss.
If Tesla reports a profit in Q3, then Tesla stock could soar to new highs. On the flip-side, if the company reports a loss, TSLA could drop to lows not seen in several years. Thus, everyone is waiting for the critical Q3 earnings report.
Until then, Tesla promises to be range-bound and follow the same pattern it has over the past several months, excluding unique events like earnings reports and go-private tweets.
This pattern is drop to $250. Hold that $250 level. Bounce off that $250 level. Rally towards $300. Hold the $300 level for a while. Then, drop back down to $250. Lather, rinse, repeat.
Thus, until the Q3 report, you want to buy TSLA as it approaches $250, and sell it as it approaches $300.
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 302.09.
The projected upper bound is: 298.03.
The projected lower bound is: 204.48.
The projected closing price is: 251.26.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 25 white candles and 25 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 21.2269. This is not an overbought or oversold reading. The last signal was a buy 0 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 38.17. 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 23 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 -97. This is not a topping or bottoming area. The last signal was a buy 0 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 down -4.650 at 252.230. Volume was 23% below average (neutral) and Bollinger Bands were 3% wider than normal.
Open High Low Close Volume___
257.530 262.250 249.030 252.230 8,167,738
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 273.75 306.05 313.64
Volatility: 145 98 69
Volume: 14,944,078 11,581,946 8,622,341
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 19.6% below its 200-period moving average and is in an downward trend. Volatility is high 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 3 periods.