Tesla, Inc. (NASDAQ:TSLA) likely to continue to be one of the most talked-about stocks in 2019

Tesla, Inc. (NASDAQ:TSLA) likely to continue to be one of the most talked-about stocks in 2019

Tesla, Inc. (NASDAQ:TSLA) likely to continue to be one of the most talked-about stocks in 2019

One thing best describes Tesla (NASDAQ:TSLA) stock’s daily moves in the markets: roller coaster. Tesla stock is soaring one day and falling off the cliff the next. Its 52-week price range has been $244.59 (April 2, 2018) – $ 387.46 (Aug. 7, 2018). Unless TSLA releases very strong fundamental numbers when it reports earnings on Feb. 6, I expect Tesla stock to continue this range-bound trading.

Over the past year, the TSLA stock price has been a battleground between two camps: investors and traders. Investors have been wondering whether the company will be able to work through various production issues and margin worries as it becomes a full-fledged car manufacturer. Bulls point out how well TSLA stock has held up since October when all other tech heavyweights have plunged in a free fall. Bears are happy to point out that the level of short-selling in the stock is a reflection of sentiment and fundamental worries.

Traders, on the other hand, watch the unpredictable mood swings and Twitter (NASDAQ:TWTR) rants of CEO Elon Musk as they trade Tesla stock from one end of the upper price range of about $285 to the other end at $250. In other words, in 2018, the public relations noise surrounding TSLA has taken over the story of its fundamentals.

I expect TSLA stock’s range to stay intact in the near future unless the company reports a robust earnings report in early February. Yet, eventually, fundamental catalysts will drive the Tesla share price higher, and the stock price will break over $400.

In the meantime, patient investors who believe in the TSLA story may see any price drip toward the $250 range as an opportunity to get long the stock and ride out the daily volatility. In two to three years, I expect theses investors to be rewarded handsomely.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 377.76.

The projected lower bound is: 311.38.

The projected closing price is: 344.57.

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 30 white candles and 20 black candles for a net of 10 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 71.8504. This is not an overbought or oversold reading. The last signal was a sell 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 53.67. 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 87 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 84. This is not a topping or bottoming area. The last signal was a sell 1 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 5 period(s) ago.

Rex Takasugi – TD Profil

TESLA INC closed up 10.030 at 344.430. Volume was 33% below average (neutral) and Bollinger Bands were 20% narrower than normal.

Open High Low Close Volume___
335.000 348.800 334.500 344.430 6,056,590

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 330.81 341.61 314.14
Volatility: 73 65 74
Volume: 6,840,992 6,957,604 9,196,910

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 9.6% above 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 19 periods.

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