Tesla, Inc. (NASDAQ:TSLA) run into some serious resistance
Shares of Tesla (NASDAQ: TSLA ) have run into some serious resistance even after after avoiding any headline risk over the past several weeks. TSLA stock seems to be stalling out after a red hot rally off the recent lows at $180. Given the ongoing cash burn and deteriorating demand, I look for Tesla stock to put on the brakes and head lower over the coming months.
Goldman Sachs recently slashed their price target by 20%, citing “sustainable demand” as the key factor. In the note from June 20, Goldman dropped the price target on Tesla stock from $200 to just $158, representing a 28% discount to the $221.86 closing price of TSLA. Goldman also brought up the possibility if yet another additional-and further dilutive-capital raise.
According to Tesla analysts , demand forecasts for Tesla will, once again, underperform. While CEO Elon Musk yet again predicts that sales could hit record levels, second-quarter projections point to deliveries of just 88,900 units – well under expectations. At some point investors will likely begin to tire of the continued ability of Tesla to overpromise and under deliver.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 242.77.
The projected lower bound is: 202.72.
The projected closing price is: 222.74.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 38.9539. This is not an overbought or oversold reading. The last signal was a sell 8 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 55.52. 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 14 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 79. This is not a topping or bottoming area. The last signal was a sell 3 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 13 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 1.780 at 223.640. Volume was 48% below average (neutral) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
223.240 225.860 221.020 223.640 5,750,771
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 219.65 226.46 287.31
Volatility: 44 58 71
Volume: 9,987,678 12,179,139 9,821,434
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 is currently 22.2% 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 7 periods.