Tesla, Inc. (NASDAQ:TSLA) stock is falling out of a four-month consolidation range
Tesla stock is falling out of a four-month consolidation range, testing lows not seen since October. This marks a drop of more than 25% from its December highs. Headlines have been brutal lately, from CEO Elon Musk tussling with the Securities and Exchange Commission again over his tweets to reports China has suspended Model 3 customs for improper labeling. The next big catalyst will be the Model Y compact SUV unveiling scheduled for Mar. 14. The fear is that the vehicle will cannibalize sales of the Model 3.
The company will next report results on May 1 after the close. Analysts are looking at a loss of 36 cents per share on revenues of $7.3 billion. When the company last reported on Jan. 30, earnings of $1.93 missed estimates by 9 cents per share on a 119.8% rise in revenues.
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 313.69.
The projected upper bound is: 312.00.
The projected lower bound is: 238.92.
The projected closing price is: 275.46.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 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 11.0641. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 35.95. 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 121 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 -161.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 2 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -0.300 at 276.240. Volume was 24% above average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
276.480 281.506 274.390 276.240 10,335,485
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 295.01 311.84 316.29
Volatility: 69 74 75
Volume: 12,067,178 8,397,513 9,284,306
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 is currently 12.7% 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 10 periods.