Tesla, Inc. (NASDAQ:TSLA) Investors Shrug Off Job Cuts
Tesla Inc (Nasdaq: TSLA) stock was trading flat on Wednesday, a day after it told employees it would be laying off about 9 percent of its workforce. Following the announcement Tuesday afternoon, TSLA stock shed $15 per share but still finished the day up more than 3 percent on renewed optimism about Model 3 production.
Tesla CEO Elon Musk announced a “thorough reorganization” of the company in May, and Musk said on Tuesday the reorganization will involve eliminating 4,100 salaried positions. After Musk’s email to employees announcing the cuts leaked to the media, he tweeted the full email, adding that the job cuts were a “difficult, but necessary” decision.
Tesla had previously added about 8,000 jobs in 2018.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 308.26.
The projected upper bound is: 372.44.
The projected lower bound is: 320.21.
The projected closing price is: 346.33.
A black body occurred (because prices closed lower than they opened).
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.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 83.0041. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 71.93. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 50 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 127.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 16 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 buy 10 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 2.010 at 344.780. Volume was 21% above average (neutral) and Bollinger Bands were 67% wider than normal.
Open High Low Close Volume___
346.706 347.200 339.800 344.780 9,469,804
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 313.73 295.89 322.77
Volatility: 63 56 50
Volume: 10,845,550 8,270,014 6,738,865
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 6.8% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 5 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition.