Tesla, Inc. (NASDAQ:TSLA) is slated to launch a pick-up truck and its Model Y crossover

Tesla, Inc. (NASDAQ:TSLA) is slated to launch a pick-up truck and its Model Y crossover

Tesla, Inc. (NASDAQ:TSLA) is slated to launch a pick-up truck and its Model Y crossover

Tesla (NASDAQ:TSLA) stock made a near-term low of $179 in the beginning of June. After a relatively sharp rebound, TSLA has been in consolidation mode.

I believe that TSLA stock will consolidate in the range of $220-$250 before surging higher.

TSLA Will Get a Boost From the Trade Detente

The progress that the U.S. and China have made towards a trade pact will be positive for TSLA stock. The company’s Shanghai battery factory will become operational towards the end of 2019, and a trade truce will calm the owners of Tesla stock.

In addition, the trade war has impacted GDP growth in the United States as well as China. If  the trade dispute is gradually resolved, stronger economic growth could cause the   electric-vehicle sector’s growth to accelerate.

Pickups and Trucks Will Boost Tesla’s Growth

Tesla’s pickup and truck are slated to be launched within the next 12-18 months. I believe that these vehicles will boost Tesla’s revenue growth over the longer term.

Tesla’s truck, called the Semi, will have a range on a single charge of 300 miles or 500 miles. It’s expected to have a base price of $150,000. However, there are reports that its maximum range might be 600 miles.

Those specifications are attractive. It’s worth noting that PepsiCo (NASDAQ:PEP) will be buying 15 electric trucks from TSLA to replace diesel trucks at its facility.  Meanwhile, Anheuser-Busch InBev (NYSE:BUD) will be deploying 21 battery electric trucks made by China’s BYD (OTC:BYDDF) in its California fleet as part of its commitment to sustainable logistics.

The point is that  logistics companies are increasingly deploying electric vehicles, and TSLA should benefit from that trend.

Technical Indicators

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 237.53.

The projected upper bound is: 276.43.

The projected lower bound is: 240.53.

The projected closing price is: 258.48.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 89.5495. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 14 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 65.10. 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 sell 57 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 177.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 3 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 0.930 at 257.890. Volume was 17% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open     High      Low     Close     Volume___
257.700 260.000 254.120 257.890 6,479,456
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 243.74 233.66 255.60
Volatility: 39 49 58
Volume: 8,464,772 6,801,732 9,067,583

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 0.9% above its 200-period moving average and is in an upward 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 bullish on TSLA.O and have had this outlook for the last 25 periods.

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