Tesla, Inc. (NASDAQ:TSLA) SEC Sued Elon Musk
Following the lawsuit filed by the SEC against Elon Musk, which the billionaire initially refused to settle, Tesla shares took a major tumble. As of closing time on September 28, the company’s stock price declined by 14%, a loss of $7.3 billion USD. This is likely to be only temporary, however; Tesla shares fell by nearly 10% percent back in August, eventually rising back to normal heights.
The company’s consistently strong shares reflect its resilience. Regardless of impropriety, Tesla is blessed with a solid core of faithful fans and competent ideas. For now, Musk has since settled with the SEC and resigned as chairman of Tesla, though he’ll stay on as CEO. He will also pay a $20 million USD fine, matched by Tesla due to failure to confirm the legality of Musk’s Twitter announcements. The entire $40 million USD will be distributed to shareholders harmed by the falling share prices, though it’s a pittance when compared to the $7.3 billion USD loss. Still, if past transgressions are anything to go off of, it seems likely that Tesla stock will rebound.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 305.07.
The projected lower bound is: 222.25.
The projected closing price is: 263.66.
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 28 white candles and 22 black candles for a net of 6 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. There have been 8 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 35.7102. 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 34.86. 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 -212.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 10 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -42.750 at 264.770. Volume was 239% above average (trending) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
270.260 278.000 260.555 264.770 33,649,696
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 295.88 310.92 316.25
Volatility: 97 85 63
Volume: 10,345,660 10,570,099 8,294,331
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 heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 16.3% 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 22 periods.
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