Tesla, Inc. (NASDAQ:TSLA) overseas expansion is critical
After an initial period of challenges and delays for Model 3 production that Tesla(NASDAQ:TSLA) CEO Elon Musk referred to as “production hell,” Model 3 manufacturing saw significant improvements in the second half of last year. Deliveries of the vehicle in the third and fourth quarter of last year were 55,840 and 63,150 units, respectively. These deliveries were up from a total of about 26,000 Model 3 deliveries in the first half of 2018.
While higher Model 3 production and deliveries have helped the automaker swing to a profit, this was only accomplished by prioritizing deliveries of higher-priced Model 3 variants in North America. But the market for high-end Model 3’s is only so big — and there are signs Tesla is coming close to maxing out sales of pricey Model 3 variants in its current markets.
Fortunately, Tesla still has more major global markets to expand to where it can try to take full advantage of pent-up demand for the vehicle before it brings to market lower-cost versions. One of these markets is Europe, where Tesla is getting ready to begin Model 3 deliveries.
Expanding to Europe
Netherlands Vehicle Authority (RDW) cleared the Model 3 for deliveries in Europe, reported Bloomberg on Monday. The approval suggests the automaker is on track with its plan to expand Model 3 deliveries to the key market by February.
“European Model 3s off the production line,” Tesla said in a tweet that showed a photo of several Model 3s on Monday.
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 329.59.
The projected upper bound is: 339.54.
The projected lower bound is: 263.42.
The projected closing price is: 301.48.
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 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 33.2669. This is not an overbought or oversold reading. The last signal was a sell 3 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 39.25. 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 90 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 8 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -45.050 at 302.260. Volume was 171% above average (trending) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
323.000 327.130 299.730 302.260 24,150,764
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 337.55 340.88 315.08
Volatility: 95 74 75
Volume: 7,491,121 7,135,205 9,085,231
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 down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 4.1% 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 0 periods.