Tesla, Inc. (NASDAQ:TSLA) next level of technical resistance around $363

Tesla, Inc. (NASDAQ:TSLA) next level of technical resistance around $363

Tesla, Inc. (NASDAQ:TSLA) next level of technical resistance around $363

A 12% Rise

The $380 strike price calls for expiration on December 21 have seen their open interest levels increase by almost fivefold on November 12, to approximately 10,500 open contracts. A buyer of the calls would need the stock to increase by 12% to $391 from a stock price of $350.51 on November 9. It is a substantial wager with the open calls worth about $11.4 million. Should the stock rise to that price it would be trading at a new all-time high.

Nearing Resistance

The chart suggests Tesla may rise further to its next level of technical resistance around $363, an increase of 4%. However, should the stock rise above that level of resistance at $363, then the shares should have a clear path higher towards $389, the previous high. The relative strength index has been steadily trending higher since April, and it suggests that bullish momentum is moving into the stock.

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 316.47.

The projected upper bound is: 373.62.

The projected lower bound is: 290.12.

The projected closing price is: 331.87.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 51.8473. This is not an overbought or oversold reading. 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 56.54. 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 45 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 14. This is not a topping or bottoming area. The last signal was a sell 6 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 18 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -19.230 at 331.280. Volume was 33% below average (neutral) and Bollinger Bands were 62% wider than normal.

Open High Low Close Volume___
348.370 349.780 330.340 331.280 6,941,523

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

Moving Averages: 10-period 50-period 200-period
Close: 342.17 296.44 311.08
Volatility: 43 93 72
Volume: 7,365,866 10,786,876 9,129,001

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 6.5% 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 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 13 periods.

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