Tesla, Inc. (NASDAQ:TSLA) reported a surprise third-quarter profit

Tesla, Inc. (NASDAQ:TSLA) reported a surprise third-quarter profit

Tesla, Inc. (NASDAQ:TSLA) reported a surprise third-quarter profit

Tesla was flying ahead of Thursday’s opening bell after reporting third-quarter results that blew past Wall Street estimates in what the company described as a “truly historic” quarter. Shares of the electric-car maker were up more than 10%, trading at their highest level in about two months.

After Wednesday’s close, Tesla reported adjusted earnings of $US2.90 a share on revenue of $US6.8 billion, better than the $US0.15-a-share loss and $US6.3 billion that analysts surveyed by Bloomberg were expecting.

“Q3 2018 was a truly historic quarter for Tesla,” the company said in a press release. “Model 3 was the best-selling car in the US in terms of revenue and the 5th best-selling car in terms of volume.”

The company said free cash flow was $US881 million for the quarter, while its total long-term debt increased slightly, to $US9.67 billion.

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 297.72.

The projected upper bound is: 356.93.

The projected lower bound is: 271.84.

The projected closing price is: 314.38.

Candlesticks

A black body occurred (because prices closed lower 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 24 white candles and 26 black candles for a net of 2 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 84.3780. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 61.30. 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 33 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 223.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 26.360 at 314.860. Volume was 100% above average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
317.220 321.000 301.010 314.860 20,840,724

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 274.91 290.23 311.33
Volatility: 93 95 72
Volume: 11,190,704 10,696,684 8,894,212

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 1.1% above its 200-period moving average and is in an upward 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 bullish on TSLA.O and have had this outlook for the last 1 periods.

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