Tesla, Inc. (NASDAQ:TSLA) stock price target cut to $283 from $291

Tesla, Inc. (NASDAQ:TSLA) stock price target cut to $283 from $291

Tesla, Inc. (NASDAQ:TSLA) stock price target cut to $283 from $291

Morgan Stanley lowered its stock price target for Telsa Inc. TSLA, +2.70% to $283 from $291 on Tuesday and said 2019 will help provide an answer to the question of whether the company can fund its growth plans without needing external capital. “Expectations appear reasonably managed, but the stock remains fully valued,” analysts led by Adam Jonas wrote in a note, as they reiterated their equal weight rating on the stock. Morgan Stanley is cutting its 2019 full-year unit volume forecast by 8% to 380,000, assuming 296,000 Model 3 units. It cut its Model S volume forecast by 19% and its Model X volume forecast by 11%, to allow for pull-forward and obstacles to deliveries in some overseas markets.

Jonas cut his full-year revenue forecast to $29 billion from a prior $30 billion. “Driven by the cuts to our volume guidance, our delivery forecast sits in the middle of the company’s 360k to 400k unit range,” Jonas wrote in a note. He raised his GAAP operating margin forecast–or margin based on Generally Accepted Accounting Principles, the industry standard–to 3.4% from 2.0% thanks to higher cost controls and restructuring actions that have cut headcount significantly. Jonas expects the electric car maker to post a slight GAAP loss in the first quarter, followed by a small GAAP profit in Q2 and Q3 and a small loss in Q4. Morgan Stanley is now expecting Tesla to tap the equity market for a $2.5 billion capital raise in the third quarter. Tesla shares were up 1.4% in early trade, but have fallen about 5% in the last 12 months, while the S&P 500 SPX, +0.47% has gained 3%.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 320.62.

The projected upper bound is: 358.48.

The projected lower bound is: 283.18.

The projected closing price is: 320.83.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with TESLA INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 89.9001. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 51.75. 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 101 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 52. This is not a topping or bottoming area. The last signal was a buy 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 8.460 at 321.350. Volume was 25% below average (neutral) and Bollinger Bands were 11% wider than normal.

Open High Low Close Volume___
312.490 322.440 312.249 321.350 6,742,765

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

Moving Averages: 10-period 50-period 200-period
Close: 303.22 331.33 315.40
Volatility: 38 74 74
Volume: 8,404,305 7,591,344 9,054,173

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 1.9% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 11 periods.

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