Tesla, Inc. (NASDAQ:TSLA) Jumps 6% Ahead Of Annual Shareholders Meeting
A sustained rally by Tesla’s badly battered stock since last week and continuing Monday comes as welcome news ahead of the company’s annual shareholders meeting Tuesday afternoon in California.
Tesla’s shares surged by as much as 6 percent Monday following a spate of analysts’ comments about the growing demand for Tesla electric vehicles (EVs), especially the Model 3 which is going great guns in Europe. The sudden turnaround in sentiment contrasts markedly to those in previous weeks marked by portents of gloom and doom for Tesla whose stock was once down almost 40 percent this year.
That slump shows signs of eroding. Tesla shares ended trading Monday at $212.88, up 4.1 percent. It improved further to $215.25 in after-hours action.
Tesla last week saw its biggest weekly gain since October 2018. Its stock jumped by 10.5 percent to outdo the broader market, which saw stocks post their best week this year amid a perceived deceleration in trade war tensions.
Some analysts and investors are betting this rally is a flash in the pan and that Tesla’s stock might tumble from current levels.
As for Tesla’s investors, they’re in for a lively shareholders meeting amid the company’s still formidable production delays, mounting competition and senior management firings. And let’s not forget Trump’s trade war on China.
Investors will vote on Tuesday to re-elect two board members. They’ll also decide on proposals relating to supermajority voting and a public policy committee.
Tesla will also ask shareholders to approve the issuance of 12.5 million in new shares as part of a new equity incentive plan. The plan will allow Tesla to continue issuing stock as compensation for employees and executives.
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 230.89.
The projected upper bound is: 233.85.
The projected lower bound is: 189.28.
The projected closing price is: 211.57.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 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 85.1822. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 49.91. 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 4 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 166.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 4 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 3 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 8.380 at 212.880. Volume was 100% below average (consolidating) and Bollinger Bands were 19% wider than normal.
Open High Low Close Volume___
210.250 216.940 209.010 212.880 1,815
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 194.44 238.12 291.70
Volatility: 62 61 71
Volume: 11,724,493 11,919,565 9,626,807
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 27.0% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 40 periods.