Tesla, Inc. (NASDAQ:TSLA) stock hits $500 for the first time

Tesla, Inc. (NASDAQ:TSLA) stock hits $500 for the first time

Tesla, Inc. (NASDAQ:TSLA) stock hits $500 for the first time

Tesla stock continued to rally on Monday, rising 5% and passing $500 per share for the first time.

That puts Tesla at a fresh all-time high as it continues to soar on its entrance into China and optimistic delivery figures. The stock has more than doubled over the past three months, according to FactSet.

The recent gains bring Tesla’s market cap to about $90 billion, which is nearly $5 billion more than that of General Motors and Ford combined. The companies’ market caps, which measures the value of their outstanding equity, don’t tell the full story, though.

Taking into account equity, debt and cash, the Detroit automakers have significantly higher total valuations. Ford would be worth the most with a total enterprise value of $154 billion, followed by GM at $132 billion, according to data compiled by FactSet.

Tesla stock has been on a tear this quarter after announcing surprise profits in its third-quarter earnings report in October of last year. Back then, the stock was just over $250 per share.

The company’s entrance into China has driven the stock higher. Tesla began deliveries of its Model 3 sedan in China at the end of 2019 and has reportedly ramped up production at the new factory to more than 1,000 vehicles per week. Earlier this month, CEO Elon Musk said Tesla plans to open a new design and engineering center in China and that it will use the Shanghai Gigafactory to build a production program for the upcoming Model Y crossover.

China is the world’s biggest for electric vehicles with 1.3 million new-energy vehicles sold last year.

Fourth-quarter delivery numbers published last week impressed investors, driving the stock to its current heights. Tesla said it delivered 112,000 vehicles in the quarter to finish out the year, which brought the total vehicles delivered in 2019 to approximately 367,500 vehicles, a 50% jump from 2018.

Technical Indicators

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 400.64.

The projected upper bound is: 559.87.

The projected lower bound is: 498.25.

The projected closing price is: 529.06.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 17 black candles for a net of 15 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 10 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 79.8502. This is not an overbought or oversold reading. The last signal was a sell 1 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 83.68. This is where it usually tops. 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 sell 33 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 165.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 buy 20 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 46.710 at 524.860. Volume was 172% above average (trending) and Bollinger Bands were 120% wider than normal.

Open     High      Low     Close     Volume___
493.500 525.630 492.000 524.860 26,634,548
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 460.34 375.66 273.06
Volatility: 68 46 59
Volume: 17,788,740 10,506,869 9,798,762

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 gapped up today (bullish) 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 92.2% 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 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 17 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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