Tesla, Inc. (NASDAQ:TSLA) riding a record high

Tesla, Inc. (NASDAQ:TSLA) riding a record high

Tesla, Inc. (NASDAQ:TSLA) riding a record high

Tesla is riding a record high, but some of its investors decided to make a surprising move: opting to sell just as the price climbed near $1,000 a share.

Last week, after experiencing a surge throughout January, the electric car company founded by Elon Musk saw its stock rise to $968.99. The result of two consecutive quarters of healthy profit, it was also encouraged by what experts believe to be large amounts of short covering tied to strong revenue and the opening of the company’s new China factory,

“What we saw as Tesla hit all-time highs [last week]—as it looked like there was money flowing in from pretty much everywhere—we saw our clients selling and taking profits,” said TD Ameritrade strategist Shawn Cruz in an interview with the site. “So last week, our clients were net sellers of Tesla as it was charging up to all-time highs. As it got above $900, we saw a meaningful spike in selling.” Not that that seems to have hurt the stock price very much so far.

After some minor Wall Street downgrades, Tesla is trading at $774.38 per share at the time of publication. Analysts expect that figure to stay more or less steady in the near future (“unless we get something else that will meaningfully bump it higher or lower,” Cruz said.). And you won’t hear any complaints from them or the shareholders who chose to hang on to their investments––the figure remains up a staggering 80 percent for the year so far.

Despite a lackluster––though meme-worthy––debut of the company’s anticipated Cybertruck, the last few months only seem to have increased its overall momentum. Late last month, Tesla achieved a $100 billion valuation, making it the first U.S. automaker to meet or surpass that gargantuan figure. It also means that it is now worth more than General Motors and Ford combined, something almost unimaginable only a short time ago when an electric car was a fringe notion. Now, those establishment manufacturers are laying the groundwork to catch up to Tesla with their own lineups of battery-powered vehicles.

Technical Indicators

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 561.08.

The projected upper bound is: 879.99.

The projected lower bound is: 672.09.

The projected closing price is: 776.04.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 33 white candles and 16 black candles for a net of 17 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with TESLA INC). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 43.8968. This is not an overbought or oversold reading. The last signal was a sell 5 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 67.90. 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 sell 5 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 55. This is not a topping or bottoming area. The last signal was a sell 4 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 41 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -7.090 at 767.290. Volume was 13% below average (neutral) and Bollinger Bands were 244% wider than normal.

Open     High      Low     Close     Volume___
777.870 789.750 763.370 767.290 12,022,470
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 750.31 504.90 312.57
Volatility: 180 93 71
Volume: 30,667,442 17,552,896 11,238,643

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 145.5% 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 38 periods.

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