Tesla, Inc. (NASDAQ:TSLA) shares fell as much as 7.5 per cent to a 52-week low in early morning trade
Tesla shares plunged below $200 for the first time in more than two years on concerns the carmaker faces a “Kilimanjaro-like uphill climb” to hit profitability goals in the second half of the year.
In a note, Wedbush analyst Dan Ives described the electric-car maker’s predicament as a “code-red situation” and cut his price target on the stock to $230 (€205) from $275. Mr Ives slashed his target from $365 just last month.
Once among the most bullish analysts covering Tesla, Mr Ives said in his note he has “major concerns around the trajectory of Tesla’s growth prospects and underlying demand on Model 3 in the US over the coming quarters”.
Tesla shares fell as much as 7.5 per cent to a 52-week low in early morning trade in New York. The stock had closed at its lowest level in almost two-and-a-half years on Friday after chief executive Elon Musk called for a “hard core” review of all the company’s expenses and an analyst warned of potentially severe fallout from a fatal crash involving Autopilot.
Tesla delivered just 63,000 cars in the first quarter but expects to deliver 90,000 to 100,000 cars in the second quarter, and 360,000 to 400,000 for the year. Mr Ives said hitting the full-year target is going to be a “Herculean task” and sees 340,000 to 355,000 as a more likely scenario.
Representatives for Tesla didn’t immediately respond to requests for comment.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 267.55.
The projected upper bound is: 226.03.
The projected lower bound is: 181.54.
The projected closing price is: 203.78.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 9 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 19.4971. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 3 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 26.10. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 15 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 -199.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 12 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 sell 5 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -5.670 at 205.360. Volume was 113% above average (neutral) and Bollinger Bands were 9% wider than normal.
Open High Low Close Volume___
202.800 206.000 195.250 205.360 20,526,196
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 230.94 260.74 302.11
Volatility: 52 55 75
Volume: 10,120,689 10,435,848 9,712,555
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 32.0% 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 moderate flows of volume out of TSLA.O (mildly bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 26 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an oversold condition.