Tesla, Inc. (NASDAQ:TSLA) Stock May Still Be Undervalued

Tesla, Inc. (NASDAQ:TSLA) Stock May Still Be Undervalued

Tesla, Inc. (NASDAQ:TSLA) Stock May Still Be Undervalued

For so long, Tesla (TSLA) was so far ahead of the competition in the luxury-electric market, it saw nothing in its rearview mirror. But recently, other luxury automakers — include Mercedes, BMW, Audi and Jaguar — have been creeping up on the incumbent, with recently or soon-to-be released luxury EVs. While some analysts and investors have expressed concern over growing competition, Tesla is actually still maintaining its wide lead. Not only is Tesla winning the branding game, but the company has actually proved that it’s doing something better than any competitor — battery life.

3-star JMP analyst Joseph Osha believes that “Tesla’s leading competitive position in the electric vehicle market supports [his] positive stance on the stock.” He calls competitors’ (specifically Audi’s) product launches “weak,” which makes him “even more confident that Tesla can hold on to its leading position.” 

As a result, Osha rates TSLA stock an Outperform along with a $337 price target, which implies about 45% upside from current levels.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 233.64.

The projected upper bound is: 257.80.

The projected lower bound is: 213.77.

The projected closing price is: 235.78.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 26 white candles and 24 black candles for a net of 2 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 84.2266. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 57.36. 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 sell 32 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 6 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 3.750 at 235.540. Volume was 47% below average (neutral) and Bollinger Bands were 47% narrower than normal.

Open     High      Low     Close     Volume___
230.800 235.540 228.940 235.540 4,883,714
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 224.70 233.09 268.31
Volatility: 33 59 61
Volume: 5,557,855 7,317,669 8,973,718

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 12.2% below 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 volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 0 periods.

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