Tesla, Inc. (NASDAQ:TSLA) Rebound Should Continue
Tesla (NASDAQ: TSLA ) Has had a bumpy road to say the least and Tesla stock has been a lot more unpredictable than any investor wants to see.
The stock market is having its best year in over two decades, with the S&P 500 rising 18% through the first six months of the 2019 – the most the headline index has rallied through the first six months of a year since 1997. But, this rising tide has not lifted all boats.
Still, Tesla apparently didn’t get an invite to the party. As the electric vehicle manufacturer struggled with stagnating demand across the entire EV industry in early 2019, TSLA stock plunged. From $330 at the beginning of 2019, to $175 by early June.
A Closer Look at Tesla
Tesla stock has, however, staged an impressive rebound rally over the past month. From early June to early July, Tesla stock has rallied more than 30% from $175, to over $230.
The catalyst? A strong second quarter delivery report which broadly underscored that Tesla’s long term growth narrative remains in-tact, and that first quarter “Tesla demand is dying” ideologies were overstated and inaccurate.
This rebound rally in TSLA stock should persist for the foreseeable future. There is one major headwind on the horizon: another halving of Tesla’s EV tax credit in early July.
But, this major headwind should be more than offset by equally major tailwinds, including resumed secular global EV adoption, renewed China auto growth, Model S and X refreshes, and Model Y production ramp.
Overall, Tesla’s delivery volumes and trends should continue to improve in the back half of 2019. As they do, TSLA stock should stay in rebound mode, especially considering the percent of the float short stands at a 2019 high level north of 30%, setting the stock up for a nice short squeeze in the event of continued positive developments.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 257.83.
The projected lower bound is: 219.91.
The projected closing price is: 238.87.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 52.0853. This is not an overbought or oversold reading. The last signal was a sell 19 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 64.12. 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 25 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 24 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 8.860 at 238.920. Volume was 16% below average (neutral) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume___
234.150 238.940 233.140 238.920 9,139,866
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 228.46 219.32 284.02
Volatility: 36 56 69
Volume: 8,167,343 11,340,183 9,682,576
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 up today (bullish) 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 15.9% below 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 volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 18 periods.