Tesla, Inc. (NASDAQ:TSLA) Likely to Bounce Back
Tesla shares have been extremely volatile over the past six months. However, the chart shows that the shares don’t stay down for very long. And now could be the time for the next peak, particularly if Elon Musk’s words prove true. “We are about to have the most amazing quarter in our history,” the CEO said in a letter published on the company’s blog shortly after market close on Friday,
Musk offered a few details about the company’s vehicle production, sales trends, while also hinting at some new products. The CEO also implored employees to stay focused on the things that matter and to ignore the media. “For a while, there will be a lot of fuss and noise in the media. Just ignore them. Results are what matter and we are creating the most mind-blowing growth in the history of the automotive industry.”
There has been a lot of criticism about the Model 3 — the company’s flagship vehicle aimed at bringing the company more mainstream and competitive with Detroit heavyweights General Motors (GM) and Ford (F). Yet, second-quarter deliveries were up 85% year over year, while climbing 36% from the first quarter. As for the third quarter, the company forecasted production in the range of 50,000 to 55,000 Model 3 vehicles. What’s more, the company also expects to report a profit in the last two quarters of the year.
All told, there is much negative news priced into the Tesla stock, while the company is predicting several stock-moving catalysts. If Tesla is able to achieve its goals without pushing back production targets, the stock will take off.
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 311.24.
The projected upper bound is: 322.60.
The projected lower bound is: 245.83.
The projected closing price is: 284.21.
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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 37.7609. 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 40.08. 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 -89. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 16 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 22.260 at 285.500. Volume was 49% above average (neutral) and Bollinger Bands were 32% wider than normal.
Open High Low Close Volume___
273.260 286.030 271.000 285.500 14,283,528
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 294.03 318.23 317.70
Volatility: 69 76 60
Volume: 10,109,509 10,330,746 8,003,972
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 10.1% 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 moderate flows of volume out of TSLA.O (mildly bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 8 periods.