Tesla, Inc. (NASDAQ:TSLA) Reverses Plans To Close Stores

Tesla, Inc. (NASDAQ:TSLA) Reverses Plans To Close Stores

Tesla, Inc. (NASDAQ:TSLA) Reverses Plans To Close Stores

Tesla stock moved up Monday after the electric car maker disclosed plans late Sunday to keep some of its U.S. stores open, opting instead to raise prices on its high-end vehicles by about 3%.

In late February, Tesla (TSLA) said it planned to close most of its stores and move to an online-only sales platform. Those designs were part of a cost-cutting measure that included layoffs.

The announcement came at the same time Tesla unveiled its long-awaited version of the Model 3 for $35,000. Subsequently, Tesla stock fell 18% over the next three days.

In a blog post by Tesla Sunday evening, the company said it now wants to close about half as many stores than initially planned.

“Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months,” the company said. As a result, Tesla said it needs to raise vehicle prices by about 3% on average worldwide.

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 312.38.

The projected upper bound is: 323.00.

The projected lower bound is: 257.44.

The projected closing price is: 290.22.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 47.4687. This is not an overbought or oversold reading. The last signal was a buy 1 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 45.45. 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 124 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 1 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 5 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 6.780 at 290.920. Volume was 6% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
283.520 291.280 280.500 290.920 7,392,278

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

Moving Averages: 10-period 50-period 200-period
Close: 291.71 310.05 316.36
Volatility: 70 66 74
Volume: 12,504,990 8,475,803 9,285,677

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 8.0% 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 13 periods.

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