Tesla, Inc. (NASDAQ:TSLA) shares have benefitted from increased Model 3 production

Tesla, Inc. (NASDAQ:TSLA) shares have benefitted from increased Model 3 production

Tesla, Inc. (NASDAQ:TSLA) shares have benefitted from increased Model 3 production

Two major investment banks had research notes on Tesla Inc. on Tuesday, sticking to their guns on their views on the stock as one predicted a “lull” in demand in early 2019 and the other called for “substantially higher” quarterly cash flow.

Tesla TSLA, -3.27%  shares have benefitted from increased Model 3 production and a combination of pent-up demand and the looming phase-out of federal tax credits, but that’s not expected to last, analysts at Goldman Sachs GS, +2.08%   said in their note.

The Goldman analysts, led by David Tamberrino, kept their sell rating on the stock and a $225 price target, among the lowest on Wall Street and one that implies a 35% potential downside.

They forecast strength in U.S. deliveries for the fourth quarter, ahead of the 50% reduction in federal tax credits starting Jan. 1.

Tesla surprised markets in October by reporting a GAAP third-quarter profit and is expected to report fourth-quarter production and delivery numbers in early January. Fourth-quarter earnings are likely to be released sometime in February.

Tesla shares have gained 12% this year, versus losses of 4% and 3.3% for the S&P 500 index SPX, +0.01%  and the Dow Jones Industrial Average. DJIA, +0.35% 

Overall, the bias in prices is: Upwards

By the way, prices are vulnerable to a correction towards 331.48.

The projected upper bound is: 368.92.

The projected lower bound is: 308.14.

The projected closing price is: 338.53.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 19.8892. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 44.44. 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 69 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 -132.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 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 1 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -11.390 at 337.030. Volume was 25% below average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
350.540 351.550 333.690 337.030 7,099,999

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 360.72 326.09 312.91
Volatility: 44 63 72
Volume: 7,424,232 8,653,076 9,242,680

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 7.7% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 1 periods.

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