Tesla, Inc. (NASDAQ:TSLA) SEC Is Intensifying Its Probe
Short sellers have a way of rattling even the most confident business leaders. A classic of the genre is Overstock chief executive Patrick Byrne, whose crazed diatribes against investors betting on a stock-price drop include a public conference call during which he ranted about a shadowy “Sith Lord” out to destroy Overstock and his railing on a site called Deep Capture against unfair financial-media coverage. Overstock also sued his purported enemies.
Tesla’s Elon Musk isn’t close to Byrne territory yet, but his recent Twitter stylings indicate that he is getting rattled by persistent investor skepticism about a money-burning, never-profitable enterprise with a market cap of about $60 billion. Short interest in Tesla stock has ticked up over the past year.
On Tuesday, Musk casually tweeted that he’s thinking about taking Tesla private at $420 a share. Twitter is not the usual venue for announcing buyout plans, to say the least. On the bright side, taking the company private, maybe with oodles of Saudi money, would give him some breathing room to get better at making cars and developing a battery-charging infrastructure that might actually allow more than a handful of aficionados to buy the things.
But every silver lining has a cloud. As Bloomberg’s Matt Levine laid out on Wednesday morning, Musk’s plan is maybe not so legal. The problem was not so much announcing it on Twitter as exactly what he announced, and then expanded on in a later blog post. For one thing, Musk claims to have already obtained financing for the $420 share price, which prompted Tesla’s stock to soar from the low $340s to as high as $379 before settling at about $358 on Thursday.
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 324.86.
The projected upper bound is: 392.42.
The projected lower bound is: 314.91.
The projected closing price is: 353.66.
A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
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 71.0146. This is not an overbought or oversold reading. The last signal was a sell 0 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 58.10. 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 36 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 77. This is not a topping or bottoming area. The last signal was a sell 0 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 5 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -17.890 at 352.450. Volume was 87% above average (neutral) and Bollinger Bands were 58% wider than normal.
Open High Low Close Volume___
365.550 367.010 345.730 352.450 17,183,812
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 332.84 326.53 317.81
Volatility: 117 75 58
Volume: 14,579,027 10,397,957 7,721,725
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 10.9% 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 2 periods.
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