Tesla, Inc. (NASDAQ:TSLA) sending out emails to reservation holders to come see the Model 3

Tesla, Inc. (NASDAQ:TSLA) sending out emails to reservation holders to come see the Model 3

Tesla, Inc. (NASDAQ:TSLA) sending out emails to reservation holders to come see the Model 3

When Tesla (TSLA – Get Report) produced 5,000 Model 3s per week at the end of the second quarter, it didn’t result in a linear line of production progress. But it did mark a turning point for management’s credibility, a point I made back in the summer. Much to the chide and snark of bearish investors, I felt that Musk was beginning to provide more realistic outlooks that investors could count on with more reliability.

Then the company delivered a profit and positive free cash flow in the third quarter. It will likely do so in the fourth quarter as well. Tesla recently introduced a mid-range Model 3, lifting consumers’ hopes that development on the short-range Model 3 is making progress.

Coming through on these expectations add credibility to Tesla’s management team, in my view, because what they say becomes more likely to come true. Unlike when CEO Elon Musk would make bold promises, only to see the results fail to come to fruition or take far longer than expected.

Musk isn’t perfect and even he acknowledges his past tendencies to over promise and under deliver. “I think I do have an issue with time,” he said at Tesla’s annual meeting last June. Like Model 3 production, Musk’s timeline estimates are improving dramatically this year — and that’s something bulls and customers alike are excited about.

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 316.51.

The projected upper bound is: 381.18.

The projected lower bound is: 298.27.

The projected closing price is: 339.73.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white 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 36.2609. 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 59.29. 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 46 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 4. This is not a topping or bottoming area. The last signal was a sell 7 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 0 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 7.450 at 338.730. Volume was 47% below average (neutral) and Bollinger Bands were 56% wider than normal.

Open High Low Close Volume___
333.160 344.700 332.200 338.730 5,448,597

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

Moving Averages: 10-period 50-period 200-period
Close: 343.05 297.44 311.05
Volatility: 44 92 72
Volume: 6,998,055 10,728,839 9,132,655

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 8.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 14 periods.

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