Tesla, Inc. (NASDAQ:TSLA) in the process of procuring land in Shanghai

Tesla, Inc. (NASDAQ:TSLA) in the process of procuring land in Shanghai

Tesla, Inc. (NASDAQ:TSLA) in the process of procuring land in Shanghai

Tesla Inc. is in the process of procuring land in Shanghai for its first factory outside of the U.S., according to people with direct knowledge of the matter, pushing ahead with plans to set up production in China after months of tumult involving CEO Elon Musk.

The carmaker is the sole bidder for a plot of land with an auction price of about 1 billion yuan ($145 million), the people said, asking not to be identified as the information isn’t public. A decision by the Shanghai government to allocate the land to Tesla could be made as soon as this month, they said.

The carmaker is considering raising some of the $5 billion it intends to invest in the plant near Shanghai from local partners, Bloomberg News reported on Aug. 1, citing a person familiar with the plans. Musk told analysts on an earnings call later that day that he expected it would take about $2 billion worth of investment for the factory to be able to produce around 250,000 vehicles a year.

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 302.47.

The projected upper bound is: 302.83.

The projected lower bound is: 209.28.

The projected closing price is: 256.05.

Candlesticks

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 26 white candles and 24 black candles for a net of 2 white 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 14.4221. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 16 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 39.37. 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 22 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 4 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -5.920 at 256.880. Volume was 21% above average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
264.610 265.510 247.770 256.880 12,815,278

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

Moving Averages: 10-period 50-period 200-period
Close: 279.28 307.03 313.97
Volatility: 146 98 69
Volume: 14,978,213 11,621,180 8,603,395

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 18.2% 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 2 periods.

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