Tesla, Inc. (NASDAQ:TSLA) partnering with Mercedes isn’t as a crazy as it seems
There’s been a low-key buzz — a hum if you will — around Mercedes-Benz and Tesla potentially partnering in the future.
Of course, whether a partnership will ever unfold remains a big question mark. And if one does come to light, the scope of that partnership would be an even larger conundrum.
Last month, Mercedes-Benz parent company Daimler (DDAIF) gave the pot a gentle stirring when its CEO Dieter Zetsche said he wasn’t opposed to working with Tesla in the future. Daimler sold its 4% equity stake in Tesla in 2014 and while Zetsche says he doesn’t regret selling the position, he noted that it “does not exclude a cooperate in a future,” when speaking at the Paris Auto Show.
Tesla CEO Elon Musk added another gentle nudge on Twitter a few weeks later. After someone inquired about the need for a “tough as nails” electric van, Musk replied with, “Maybe interesting to work with Daimler/Mercedes on an electric Sprinter. That’s a great van. We will inquire.”
It likely helps that Tesla’s situation continues to improve, both operationally and financially. As the company continues to improve vehicle production — both from a quantity and quality standpoint — and as its financial situation improves, automakers are more likely to show willingness to work with it. Why? Because no one wants to partner with a company that could go bankrupt at a moment’s notice.
So as these situations improve, companies like Mercedes are more likely to consider working with Tesla.
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 317.98.
The projected upper bound is: 388.44.
The projected lower bound is: 309.26.
The projected closing price is: 348.85.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 63.5592. This is not an overbought or oversold reading. The last signal was a sell 10 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 60.38. 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 51 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 -24. This is not a topping or bottoming area. The last signal was a sell 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 5 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -5.980 at 347.490. Volume was 23% below average (neutral) and Bollinger Bands were 28% narrower than normal.
Open High Low Close Volume___
341.750 349.800 333.550 347.490 8,004,709
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 346.78 304.60 311.21
Volatility: 43 87 72
Volume: 6,653,994 10,197,614 9,187,238
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 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 11.7% 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 very strong flows of volume into TSLA.O (bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 19 periods.