Tesla, Inc. (NASDAQ:TSLA) Rebounds As Musk Promises Double Production For 3rd Quarter

Tesla, Inc. (NASDAQ:TSLA) Rebounds As Musk Promises Double Production For 3rd Quarter

Tesla, Inc. (NASDAQ:TSLA) Rebounds As Musk Promises Double Production For 3rd Quarter

Tesla traded around $285.50 per share, raising the stock back above its price of $280.95 at close last Thursday, before Musk appeared to smoke marijuana on a talk show and its chief accounting officer resigned. The events had sent the stock down 6.3% through Friday.

“We are about to have the most amazing quarter in our history, building and delivering more than twice as many cars as we did last quarter,” Musk wrote in the email.

In the same email, Musk also announced restructuring among the company’s senior management, after talks with Tesla’s board of directors. The company promoted Jerome Guillen to president of automotive after eight years with the company, where he will “oversee all automotive operations and program management, as well as coordinate our extensive automotive supply chain.” Formerly, Guillen was responsible creating the assembly line for the Model 3 and served as Tesla’s first Model S program manager before rising to head of all vehicle engineering and worldwide sales and service.

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 309.94.

The projected upper bound is: 328.25.

The projected lower bound is: 251.05.

The projected closing price is: 289.65.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 26 white candles and 24 black candles for a net of 2 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 78.9121. This is not an overbought or oversold reading. The last signal was a buy 2 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 43.60. 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 2 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 -39. This is not a topping or bottoming area. The last signal was a buy 2 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 sell 18 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 11.100 at 290.540. Volume was 100% below average (consolidating) and Bollinger Bands were 11% wider than normal.

Open High Low Close Volume___
281.440 292.500 278.646 290.540 7,272

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 287.92 316.07 317.41
Volatility: 75 77 60
Volume: 8,954,397 10,009,248 8,009,050

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 8.5% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of TSLA.O (mildly bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 10 periods.

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