Tesla, Inc. (NASDAQ:TSLA) on track for their first 10-day winning streak in history
Tesla shares are at it again, rising for the ninth straight day. The stock rose 2.1% to more than $745 Thursday.
The shares (ticker: TSLA) have been on a seemingly unstoppable run. They are up roughly 65% since April 2, when the stock had the audacity to drop 5.6% to just $454 a share. The stock is now up about 80% year to date, crushing the comparable double-digit drops of the S&P 500 and Dow Jones Industrial Average. What’s more, shares are up more than 30% for the week.
Shayne Heffernan Trade Idea
It’s interesting to note that even after TSLA stock’s breathtaking run-up and despite traders’ shake-off of the coronavirus’ fiscal impact, We consider it a “deep value stock today.” That seems to imply that the stock is somehow underpriced. But then, that assumption makes sense if one believes that it’s destined for $6,800. Shayne Heffernan PhD in Economics
Why This Matters
Fans of Tesla (NASDAQ:TSLA) stock have had much to celebrate lately. April 17 marked a record winning streak of 11 consecutive daily gains for the share price. That puts it at an 83% gain for 2020 so far, despite the S&P 500 being slightly down for the year. Perhaps even more unbelievable is the fact that after a record-smashing run, TSLA stock isn’t even at its all-time high. Specifically, it’s still 16.44% short of its record closing price achieved on Feb. 19.
This is all taking place amid the horrifying backdrop of the spread of the novel coronavirus. Tesla investors seem to have an uncanny ability to shake off bad news. That enduring optimism may be commendable, but is it realistic? And just as importantly, is the bull run sustainable?
A Sky-High Price Objective
One way for a stock-market analyst to boost his or her profile is by publishing a highly unusual price target on a popular stock. For instance, occasionally you’ll hear about an analyst assigning a price objective of zero on a troubled company’s stock.
Alternatively, an analyst can go in the opposite direction. That’s the case with ARK Invest CEO Catherine Wood, who recently assigned a price objective to TSLA stock of $6,800 per share by the year 2024.
Mathematically, this presents some interesting considerations. The price of Tesla shares was under $20 at one point in 2010. A decade later, it’s threatening to reclaim its previous peak, which is above $900. The year 2024 isn’t a decade away, but the stock’s prior run-up demonstrates what its price action is capable of.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 882.75.
The projected lower bound is: 625.80.
The projected closing price is: 754.27.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 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 90.4957. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 68.92. 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 20 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 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 19 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 15 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 8.680 at 753.890. Volume was 31% below average (neutral) and Bollinger Bands were 40% wider than normal.
Open High Low Close Volume 772.280 774.950 747.660 753.890 13,128,237
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 625.33 644.79 405.72 Volatility: 68 142 97 Volume: 19,210,476 19,265,872 12,905,689
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 85.8% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 3 periods.
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