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Tesla, Inc. (NASDAQ:TSLA) has faced concerns over its spending, demand for vehicles and tariffs in China

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Tesla, Inc. (NASDAQ:TSLA) has faced concerns over its spending, demand for vehicles and tariffs in China

Tesla is having its best day of the year Tuesday, closing up more than 8%. The bounce added more than $2 billion to its market cap, which now sits at $34.2 billion.

Even with the boost, Tesla’s stock has fallen nearly 42% in 2019, making it the worst performer this year on the Nasdaq 100 Index. By comparison, the worst performer of the S&P 500, Mylan N.V., is down about 35% for the year.

Shares of Tesla have fallen as the company has entered cost-cutting mode and analysts questioned the demand for its vehicles and its future in China. Last week, Tesla’s stock dipped below the valuation of CEO Elon Musk’s private venture, SpaceX. Investors familiar with SpaceX’s latest funding round told CNBC it’s valued at $33.3 billion.

Tesla has made significant progress toward its second-quarter production goals for the Model 3, according to another leaked email from Musk last month. It’s also rejiggering its car factory in Fremont, California, CNBC previously reported, allowing it to ramp up production for its Model Y crossover SUV, which is a growing segment.

But the company still faces several challenges to its financial health, including the impact of tariffs in China. Loup Ventures co-founder Gene Munster estimated last month that China deliveries would fall from 70,000 to 40,000 vehicles as some Chinese consumers are likely to avoid the brand.

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 233.05.

The projected upper bound is: 214.28.

The projected lower bound is: 170.09.

The projected closing price is: 192.18.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 38.6157. 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 35.09. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -56. This is not a topping or bottoming area. 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 sell 15 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 14.630 at 193.600. Volume was 34% above average (neutral) and Bollinger Bands were 68% wider than normal.

Open High Low Close Volume___
181.100 193.980 179.610 193.600 13,807,522

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

Moving Averages: 10-period 50-period 200-period
Close: 190.84 243.35 293.96
Volatility: 67 59 71
Volume: 14,485,948 11,586,784 9,656,002

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 34.1% 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 very strong flows of volume out of TSLA.O (bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 36 periods.

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